Back to Home

what are the limitation of Section 25 company

DISADVANTAGES OF A SECTION 25 COMPANY

Posted By admin on December 25, 2013 No Comments

1.Restriction on profits earned

A Section 25 Company has to ensure that its profits and all other incomes are utilized only for the purpose of promoting its objects and not for any other purpose. It should also ensure that its profits are not distributed as dividend among its members.

2.Restriction on alteration of memorandum

Section 25 Company cannot alter its objects clause in its Memorandum without seeking the written approval of central government. If an existing company obtains a license under section 25 it has to ensure that its objects are confined to those mentioned in section 25 itself and if not make proper alteration to its memorandum and articles.

3.Compulsory compliances

If the Central Government has imposed some conditions and regulations upon the company for granting a license under section 25 then such a company is bind by such conditions and has to ensure adequate compliance with them.

4,Taxation

Section 25 Company is regarded as a ‘company’ within the meaning of the Income Tax Act, 1961 and as such its income is taxable according to the applicable rates similar to those applying to other companies.

In case you need any further information

Contact us at 9818092002
Email : info@companyindia.co.in

Filed under section 25 company Tagged with Tags: , , , , ,

Tags

about sec 25 company Advantage of Company Registrationn Advantage of setting up branch Office in India advantages of a sec 25 compay advantages of sec 25 company applicability of sec 259 on sec25 company applicability of sec 274 on sec25 company applicability of sec 275 on sec25 company Benefits of Company Formation in India can nri invest in section 25 companies? Company Formation Advantage and Disadvantage Company Formation advantages company Registration advantages Company set up benefits in India fdi requirements for sec 25 companies How to file Income tax return by Non Resident Indian How to Setup Branch office in India Listing of Advantages of Filling Taxes in India merits of sec 25 company Please find below the example of some cases where u need to submit positive aspects of a sec 25 company sec25 company's directorship requirements Sec 25 company disadvantage sec 25 company limitation seven key points of a section 25 company whar are the characteristic of a section 25 company? what are the advantages and disadvantages of a partnership firm? What are the benefits of sec 25 company? What are the disadvantage of Section 25 company what are the disadvantages of partnership? what are the fcra requirements for section 25 companies? what are the limitation of Section 25 company WHAT ARE THE MERITS OF SEC 25 COMPANY? what are the negative aspects of section 25 company What are the objective of setting up branch office in India What are the positive aspects of sec 25 company? what do you mean by mutual agency what is ngo? what is partnership deed? what is the difference between npo and trust? what is the difference between section 25 company and society? When We need to file Income tax Return Why NRI need to file Income tax return in India why we Wish to set up Branch office in India