Conversion of society / trust to a commercial business entity
Jee Education
(Querist) 18 May 2012
This query is : Resolved
I would like to know what is the procedure involved in converting a society / trust registered in Maharashtra into a business entity ( partnership or Private Company) ?
Nadeem Qureshi
(Expert) 18 May 2012
Dear Jeevan
you can contact Mr. Ajay Sethi
ajay sethi
(Expert) 18 May 2012
www.legalindia.in/section-25-companies-under-companies-act-1956
FORMATION PROCEDURE OF SECTION 25 COMPANIES:
Step – 1 Form 1A: Name approval: An application in E-Form 1A has to be made for availability of name to the registrar of companies, with a fee of Rs. 500/-. It can be filed electronically. Six name in preferential order need to be proposed
Step-2 Application to Regional Director: After the availability of name is confirmed, an application should be made in writing to the regional director of the company law board for granting license under this section. The application must include copies of the memorandum and articles of association of the proposed company, as well as a number of other documents, including a statement of assets and a brief description of the work proposed to be done upon registration.
Step – 3 Filing of Application copy to the RoC: The applicants must also furnish to the registrar of companies (of the state in which the registered office of the proposed company is to be, or is situate) a copy of the application and each of the other documents that had been filed before the regional director of the company law board.
Step – 4 Publication of Notice: Within a week from the date of making the application to the regional director of the company law board, the applicants are required to publish a notice in the prescribed manner at least once in at least two news papers. One notice should be in an English newspaper circulating in that district and in a language of the district in which the registered office of the proposed company is to be situated or is situated and circulating in that district.
Step – 5 Grant of Approval: If the registrar satisfies that the application is complete in all respects and in the best interest of the country, regional director can grant the licence under this section with or without conditions and may also direct the company to insert in its memorandum, or in its articles, or in both, such conditions of the licence as may be specified by him in this behalf
Step – 6 Other Incorporation formalities: After obtaining licence under section 25 the company shall be formed as a normal company and the other formalities of incorporation shall be complied with.
Step – 7 Registration under Section 80G: If a section 25 company gets itself registered under section 80G then the person or the organization making a donation to the NGO will get a deduction of 50% from his/its taxable income. The company has to apply in Form No. 10G to the Commissioner of Income Tax for such registration. Normally this approval is granted for 2-3 years but can be granted earlier depending upon the situations.
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Suhail A.Siddiqui
(Expert) 18 May 2012
You can get changed your trust/society into partnership/ proprietor or in a judicial person category for business purpose.conversion/ merger etc. of a trust/ society is only possible if the object is matched with other entity.
Jee Education
(Querist) 19 May 2012
my specific query is : How to convert a society registered under society's act into a private limited company? ( not sec 25 company) Escort group has done that and converted a trust to company and then sold to Fortis.
