UNDER SECTION 28 OF COMPANIES ACT

Association not for profit

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Here at Satkhira Consulting Firm Ltd., we can help you register your non-profit association. The registration procedure for non-profit association is same for public limited company. The law in relation to such association has been laid out in Section 28 of the Companies Act, 1994, as laid out below.

“28. Power to dispense with Limited In name of charitable and other companies.

(1)

Where it is proved to the satisfaction of the Government that an association capable of being formed as a limited company has been or in about to be formed for promoting commerce, art, science, religion, charity, or any other useful object, and applies or intends to apply its profits, if any or other income in promoting its objects and to prohibit the payment of any dividend to its members the Government may, by licence with approval of one of its Secretaries, direct that the association be registered as a company with limited liability, without the addition of the word “Limited” to its name, and the association may be registered accordingly.

(2)

A licence by the Government under this section may be granted on such conditions and subject to such restrictions as the Government thinks fit and those conditions and restrictions shall be binding on the association and shall if the Government so directs be inserted in the memorandum and articles or in one of those documents.

(3)

The association shall on registration enjoy all the privileges of limited companies and be subject to all their obligations except those of using the word “Limited” as any part of its name and of publishing its name or of sending lists of members to the Registrar.

(4)

A licence under this section may at any time be cancelled by the Government and upon cancellation the Registrar shall enter the word “Limited” at the end of the name of the association upon the register and the association shall cease to enjoy the exemptions and privileges granted by this section:

Provided that before a licence is sop cancelled the Government shall give to the association a notice in writing of its intention and the grounds their of and shall afford the association an opportunity of submitting a representation in opposition to the cancellation.”

Please refer to our page on registration of Public Limited Company, to find out more about timeframe and registration process for your Non-Profit Association.