March 14, 2014


Many of the users of the has been asking to publish an article relating to NGO's formed under Section 25 of Companies Act, 1956 (Now Section 8 Of Companies Act, 2013). In this post I have tried to sum up the procedure to be followed at the time of registration of Section 25 Company.

As earlier discussed in the post:  

NGO' can be formed in 3 ways viz:
  1. Society
  2. Trust
  3. Company u/s 25 (Section 8 of Companies Act, 2013)
The third way to form a NGO is as Company under Companies Act. Due to better laws, Section 25 companies have the most reliable strongest organizational structure and it is a easier to form as well manage a Company then to manage the Trust and the Society.

 As per Section 8 of Companies Act, 2013 (the erstwhile section 25 of Companies Act, 1956):

Where it is proved to the satisfaction of the Central Government that a person or an association of persons proposed to be registered under this Act as a limited company—

(a) has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;
(b) intends to apply its profits, if any, or other income in promoting its objects; and
(c) intends to prohibit the payment of any dividend to its members,

the Central Government may, by licence issued in such manner as may be prescribed, and on such conditions as it deems fit, allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited” , and thereupon the Registrar shall, on application, in the prescribed form, register such person or association of persons as a company under this section.



1. GET DSC FOR THE DIRECTOR- First of all get a Class II Digital Signature Certificate for one of the prospective director. This can be purchased from your local RA's, of companies providing DSC.

2.APPLY FOR DIN OF THE DIRECTORS- After getting DSC, get Director Identification Number for each of the Director of the proposed company. There should be atleast 2 director in the Company. To get DIN file online form DIN1. Fees is Rs. 100 for each DIN.

3. APPLY FOR NAME OF THE COMPANY- After getting DIN for each director apply for name of the company. You can apply upto 6 names in the order of preference for the prospective company. For applying for name file E-Form 1A. Fees for Name approval is Rs. 1000.00

4. LICENSE FOR SECTION 25 COMPANY- Section 25 Company requires a licenses to be taken from the Regional Director. To get a license file E-form 24A.

4. Get MOA and AOA stamped- Pay appropriate Stamp Duty and get your MOA and AOA vetted.

5. File form 1- Application or declaration for incorporation of a company

6. File Form 18-Notice of situation or change of situation of registered office

7. File Form 32- Particulars of appointment of managing director, directors, manager and secretary and the changes among them or consent of candidate to act as a managing director or director or manager or secretary of a company and/ or undertaking to take and pay for qualification share

Hope this helps the readers, feel free to comment and post queries. For further queries write your query at: ASK QUERY


  1. This is helpful but nothing is mention about the fee of license by filling e-form 24a.


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