Updates

REGISTRATION OF ELECTORAL TRUST AS COMPANIES UNDER SECTION 25 OF THE COMPANY ACT, 1956

Date: 28^th June 2013

In continuation to the ministry’s circular no. 45 dated. 08.07.2011, 48/2011 dated 22.07.2011 and 7/2012 dated 25/04/2012 on the subject cited above and para no. 9(iii) of General Circular  no. 45 dated 08.07.2011 is modified as under:-

“(iii) If it includes the words indicative of a separate type of business constitution or legal person or any connotation thereof, the same shall not be allowed. For e.g.: Cooperative, sehkari, trust, LLP, Partnership, society, proprietor, HUF, Firm, Inc, PLC, GmbH, SA, PTE, Sdn, AG etc.

Explanation: 1) Name including phrase ‘Electoral Trust’ may be allowed for Registration of companies to be formed under section 25 of the Companies Act, 1956 under the Electoral Trust Scheme,2013 as notified by the Central Board of Direct Taxes (CBDT).

 2) However, the company to be formed under section 25 of the Act, shall be the new company and such company will be required to comply with section 293 A – “Prohibitions and restrictions regarding political contributions” of the Act.

Further, Name application will be accompanied with an affidavit to the effect that the name to be obtained shall be only for the purpose of registration of companies under Electoral Trust Scheme as notified by the CBDT.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in