NGOs can also be registered as sec. 8 companies (old sec. 25). The new procedures allow quicker registration, in just about a month. They enjoy all the benefits of a charitable trust or society, with clearer governance rules.
In a welcome move, the Government has announced some more relaxations for these:
1. No minimum requirement for paid-up capital (sec. 2)
2. Minimum notice period for AGM etc. reduced to 14 days (sec. 101)
3. Consent to act as director neither needed (DIR 2), nor to be filed with ROC (DIR 12) (sec. 152)
4. Quarterly board meetings not needed. Once every six months enough (Sec. 173)
5. Lower quorum permitted for board meetings (sec. 174)
6. Disclosure or recording of interest in related-party transactions needed only if these exceed Rs. 1 lakh (Sec. 184, 188, 189)
In a welcome move, the Government has announced some more relaxations for these:
1. No minimum requirement for paid-up capital (sec. 2)
2. Minimum notice period for AGM etc. reduced to 14 days (sec. 101)
3. Consent to act as director neither needed (DIR 2), nor to be filed with ROC (DIR 12) (sec. 152)
4. Quarterly board meetings not needed. Once every six months enough (Sec. 173)
5. Lower quorum permitted for board meetings (sec. 174)
6. Disclosure or recording of interest in related-party transactions needed only if these exceed Rs. 1 lakh (Sec. 184, 188, 189)
