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 made on the application. 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.
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. Ngo registration should be managed through the registered office.
The Secretary of a licensing committee for the purposes of the licensing sessions to be held in the licensing district of such committee or in any licensing area shall be the Clerk of the Peace for the magisterial district coterminous with the licensing district of such committee or the Clerk of the Peace for the licensing area, respectively, save that the Chief Magistrate may, if he thinks fit, and properly registered under trust registration then designate a public officer either generally or for any special occasion, to perform the duties of the Secretary of a licensing committee instead of the Clerk of the Peace for the magisterial district coterminous with the licensing district of such a committee or the Clerk of the Peace for the licensing area. It must be registered under the act of society registration. A license shall only authorize the person to whom it is granted to carry on the licensed trade in one set of premises to be specified in the license, and the whole of the premises must be adjoining and held together for the same trade.
The licensing committee in the exercise of its discretion may at any licensing session, or at any adjournment thereof, examine any person who in the opinion of the licensing committee is able to give any evidence relevant to the application before it and for that purpose may summon that person to appear before it.