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CS Executive · Company Law and Practice · Legal Status and Types of Registered Companies

Gyan Vikas Foundation is proposed to be registered as a company promoting education and research. It will apply all profits to its objects and will not pay any dividend to members. Under section 8 of the Companies Act, 2013, which authority issues the licence permitting registration without the word 'Limited' or 'Private Limited' in its name?

The Central Government issues the licence. Under section 8, once it is satisfied that the objects are charitable, profits will be applied to those objects and no dividend will be paid, it may license registration without 'Limited' or 'Private Limited'. The Registrar merely registers the company afterwards.

  1. AThe Registrar of Companies, on filing the memorandum
  2. BThe National Company Law Tribunal
  3. CThe Securities and Exchange Board of India
  4. DThe Central GovernmentCorrect

Explanation

Section 8(1) says that where it is proved to the satisfaction of the Central Government that the conditions are met, the Central Government may by licence allow registration without the word 'Limited' or 'Private Limited'. The Registrar only registers the company after the licence is issued, so the Registrar is not the licensing authority.

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