Harish Rajendran24 Aug, 2021Legal
A company can be formed as a non-profit organisation (NGO) under Section 25 of the Companies Act, 1956, on the condition that the profits earned from the operation of the company are spent solely for the fulfilment of the company's goals and objectives, and that no dividends are paid to the promoters or shareholders. The formation of an NGO in India is not particularly common or popular because it necessitates a higher level of legal and procedural compliance, but it is a very systematic and most appropriate manner of doing so.
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