The Central Government is empowered to grant licenses to association/companies which intend to promote commerce, art, science, religion, charity or any other useful subject and which intend to apply their profits if any or other income on promoting their objects and to prohibit the payment of any dividend to their members.
The associations which are granted such license are allowed to be registered as companies with limited liability without the addition to their name the words Limited or Private Limited.
They are eligible for exemptions from some of the provisions of the Companies Act, 1956.
Conditions for Grant of License In order to obtain the status contemplated the promoters or the company must prove to the satisfaction of the Central Government that an association is about to be formed as a limited company for promoting commerce, art, science, religion, charity or any other useful object and the association intends to apply its profits if any or other income in promoting its objects and payment of dividend to its members is prohibited. The license is granted by the Regional Director after the scrutiny of the application and considering the recommendation of the Registrar made on the application. You can check the further information on ngo consultancy.
If any objections are received from anybody in response to the advertisements published in the newspaper the Regional Director shall consider the objections consult any authority Department or Ministry as it may decide.
After such considerations and consultations, the Regional Director shall decide whether the license shall or shall not be granted.
Regional Director license authority for ngo
A copy of the application with all enclosures and accompanying papers should be sent to the Registrar of Companies of the State where the company proposes to situate its Head Office/ Registered office. The licensee shall not at any time transfer or assign its license in any manner without the prior approval of the Commission:
Provided that the licensee can transfer or assign its license only to such person who fulfills the conditions of Regulations 3 and 4 of these regulations with prior approval of the Commission:
Provided further that the licensee shall make an appropriate application before the Commission containing the details of the person to whom the license is proposed to be transferred or assigned, its eligibility to hold the license under these regulations and an affidavit from the proposed transferee or assignee that it will abide by the terms and conditions of license and comply with the provisions of the Act, Rules, and regulations made thereunder and the orders of the Commission as may be issued from time to time: For more information check the details required for trust registration or formation. Provided also that the licensee shall be required to publish in brief in two daily newspapers having circulation in each of the five regions in addition to those published from Delhi, including one economic daily newspaper about its application for transfer or assignment of its license and invite suggestions/objections within 30 days and submit the copies of the publication along with its response to the suggestions/objections, if any, within 45 days from the date of publication.
