License under Section 42 of the Companies Act, 2017
Any three or more persons associated for lawful purpose may by subscribing their names to the memorandum and Articles of association and complying with the requirements of the Companies Act, 2017 and Companies Regulations, 2024 form a company. A not-for-profit association applies its profits or income in promoting its objects only and prohibits the payment of any profits, income, dividend or proceeds to its members. Any such association is required to obtain license under Section 42 of the Act read with regulations 4 and 5 of the Companies Regulations, 2024 before its incorporation as a company.
The guidebook and checklist as well as format of application forms/enclosures for obtaining license is provided in the Companies Regulations, 2024.