Section 25 Company
This query is : Resolved
02 December 2010
A section 25 company wants to change its members. what is the procedure. please suggest.
Ajay Mishra
(Expert)
04 December 2010
The procedure are same as applicable to public or private company.
• MEMBERSHIP IN SECTION 25
Though a partnership firm is not a legal person like a body corporate, section 25(4) of this section enable the firm to become member of any association registered under this section such as chamber of commerce or club or charitable institution and enjoy all such privileges as are enjoyed by bodies corporate which become members of such associations. Membership of such firm shall cease upon dissolution of the firm. However, the partners of the firm may continue to be the members of such company in their individual capacity.
It is advisable that the firm should obtain membership in the individual name of the partners as they may agree.
• SHARE CAPITAL
As per the provision of section 3 of the Companies Act, 1956, a private company is required to have a minimum paid-up capital of Rs. 1Lakh and Public Company is required to have minimum share capital of Rs. 5 Lakh. However section 25 companies have been exempted from this requirement regarding minimum share capital by virtu of sub-section (6) inserted by Companies Amendment Act of 2000. As such they can be registered even if they have share capital less than the statutory minimum.
Best Regards
• MEMBERSHIP IN SECTION 25
Though a partnership firm is not a legal person like a body corporate, section 25(4) of this section enable the firm to become member of any association registered under this section such as chamber of commerce or club or charitable institution and enjoy all such privileges as are enjoyed by bodies corporate which become members of such associations. Membership of such firm shall cease upon dissolution of the firm. However, the partners of the firm may continue to be the members of such company in their individual capacity.
It is advisable that the firm should obtain membership in the individual name of the partners as they may agree.
• SHARE CAPITAL
As per the provision of section 3 of the Companies Act, 1956, a private company is required to have a minimum paid-up capital of Rs. 1Lakh and Public Company is required to have minimum share capital of Rs. 5 Lakh. However section 25 companies have been exempted from this requirement regarding minimum share capital by virtu of sub-section (6) inserted by Companies Amendment Act of 2000. As such they can be registered even if they have share capital less than the statutory minimum.
Best Regards
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Issuing of delivery challan by seller of goods
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- Taxation of crypto futures in India Fy 2026- 2027
- Oct 2025 Invoices
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
