An unregistered partnership firm is not a legal entity and thus is not considered as separate entity from its partners. Thus, the partnership firm is not eligible for becoming the shareholder of the firm. However, the registered partnership firm is eligible to become the shareholder of the company.
Can Huf be director of the company?
Whether HUF can be treating as Relative of Director? NO, It can’t be treated as relative of the Director. Because as per Companies Act Clause 2(77) “Relative with reference to any person, means they are member of HUF”.
Can Huf be a promoter of a company?
In cases of promoter being a natural person, any HUF or a firm in which the promoters and his immediate relatives possess an aggregate shareholding which is either equal to or more than 10% of the total capital of the company.
An HUF can run its own business to generate income. It can also invest in shares and Mutual Funds. And being a separate entity, the HUF enjoys a basic tax exemption of Rs 2.5 lakh.
Income stocks usually pay shareholders quarterly, but these companies pay each month.
Can HUF form a company?
A HUF is considered as an individual person but not a juristic person for all purposes. Shares of a company can be registered in the name of Karta as “xx HUF”. Hence, a HUF can become a shareholder of a company.
Can directors are personally liable to the company?
4.2 However, as mentioned above, a director can become personally liable under Indian laws, in certain circumstances such as where the liability is stated to be unlimited in the company’s organizational documents; or the director is found guilty of fraud or misrepresentation; or has personally assured, indemnified or …
Is company an artificial person?
The incorporation of a company is an artificial entity recognized by the law as a legal person that exists independently with rights and liability. This means that a company is treated as a separate person from its participants. … Its existence is ended when it is wound up pursuant to the Companies Acts.
What is HUF full form?
Hindu Undivided Family (‘HUF’) is treated as a ‘person’ under section 2(31) of the Income-tax Act, 1961 (herein after referred to as ‘the Act’). … Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters.
Can a body corporate be a promoter?
It should be noted that, under the proviso to the definition of the promoter group, financial institutions, scheduled bank, foreign portfolio investor other than individuals, mutual funds, and such other body corporates as provided, are not deemed to be promoter group merely by virtue of the fact that 20% or more of …
Can HUF buy a car?
Who is eligible for a car loan? A salaried individual, self-employed whether in business or profession are eligible to apply. One can even apply on the name of the HUF, firm, company, etc. to avail of the depreciation (a deductible expense) benefit, under the Income-tax Act.
How HUF can earn income?
The entity is allowed to earn from all legitimate ways except by way of salary. It can engage in business, investing in real estate and market linked investment options such as shares, earn income through rent etc. The HUF should file for ITR (Income Tax Returns) and income earned would be taxed as per the slabs.