1. Such associations enjoy their standing as a company and at the same time are not required to suffix the words 'private limited' or 'limited' as required under section 13(1)(a).
2. No requirement of minimum paid-up capital
Requirement of minimum paid-up capital of Rs. 1.00 Lac for a private limited and Rs. 5.00 Lacs for a public limited company shall not be applicable to a company registered u/s 25 of the Companies Act, 1956.
Exemptions/privileges available to section 25 companies
The Central Government has provided various exemptions to a company incorporated under section 25 of the Companies Act, 1956 from time to time for compliance of the various provisions of the Act.
As per section 25(6) Central Government is vested with the power to order that certain provisions of the Act as specified in the order shall not apply to a company licensed under section 25. The following exemptions are available to such a company as per the notifications issued till now:—
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1. Section 3(5) |
Not required to have minimum paid up capital. |
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2. Section 147 |
Entire provisions. |
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3. Section 160(l)(aa) |
Entire provisions. |
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4. Section 166(2) |
The Board of directors may in advance decide the time, date and place of each annual general meeting taking into account the direction, if any, given by the company in general meeting. |
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5. Section 171(1) |
A general meeting may be called by giving notice of not less than 14 days. |
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6. Section 209(4A) |
Preservation of records shall be for at least 4 years preceding the current year. |
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7. Section 219 |
Documents may be sent to members not less than 14 days before the meeting. |
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8. Section 257 |
Not applicable to a company which has provided by its articles for election of directors by ballot. |
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9. Sections 259, 264(1) |
Entire provisions. |
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10. Sections 280, 282 |
Entire provisions. |
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11. Section 285 |
There shall be a Board meeting at least once in every six calendar months. |
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