• Pvt. Ltd company registration

    +91- 8422985681

  • how to register a company

    09987623284

  • Private limited company

    hr@kshitijconsultancy.com

What is Closing a Section 8 Company

Promoters engaged in the business not for profit ideally go for registering a company under Section 8 of the Companies Act, 2013. Once a company is registered under Section 8 either as a public or private such company is free from not using the words private limited or public limited after the key word of the company. A partnership firm can also become a member of Section 8 Company.

These companies often find it difficult to shut down the company as this company is having the license to operate as Charitable Company it is required to surrender that license by converting the company into a normal company other than a Section 8 Company.

Mandatory Documents:

1. Certified true copy of the special resolution along with a copy of the Notice convening the meeting including the explanatory statement;

2. Memorandum of association;

3. Articles of association;

4. Certified true copy of board resolution(s) authorizing conversion;

5. Certified true copy of the special resolution passed for approval for conversion into any other kind and notice convening the general meeting along with the relevant explanatory statement annexed thereto;

6. Certificate from CA/CS/CWA (in practice) certifying that the conditions laid down in the Act and rules, have been complied with;

7. Statement of assets and liabilities of the company as on the date not earlier than thirty days of that date duly certified by the auditor;

8. Copy of valuation report by a registered valuer about the market value of assets;

9. Audited financial statements, the Board’s reports, annual returns and the audit reports for each of the two financial years immediately preceding the date of the application or, where the company has functioned only for one financial year, for such year;

10. NOC from all the creditors is mandatory, if any;

11. A declaration by the directors that the conditions, if any imposed by the Regional Director have been fully complied with.

Optional Documents:

1. Statement of financial position if applicable;

2. Full details of fixed assets alienated if any, during the preceding three financial years;

3. Written consent of the lenders is mandatory if any loan is outstanding;

4. NOC from the concerned authority in case special status is mandatory when the company has obtained any special status/ privilege;

5. Proof of payment of differential amount is mandatory if the company has acquired any immovable property through lease or otherwise from any Government or authority or body corporate or person since incorporation at concessional rate or free of cost;

6. Details of donation/grant/benefit received since incorporation of company is mandatory if company has received any donation and/or grant/benefits from any person or authority since incorporation.

Advantage of Closing a Section 8 Company


Newer Goals

In case of the goal being obsolete, the members of the board can concentrate on new goals.

Newer Merges

Sometimes a Section 8 Company closes as it might get acquired by other NGO or greater cause Companies.

Debt Clearance

The remaining assets in the name of the company can be used to pay of any debts remaining during the closure of the NGO company.

Documents for closing a section 8 company


Special Resolution True version.

Memorandum of association.

Articles of association.

Asset statement.

NOC of the creditors.

Financial Audit statement.

Written consent of the lenders

Details of donation/grant received since incorporation of company

Call Us at : 8422985681 / 9833628008


PACKAGES


Basic

17999/-
Inclusive all taxes

Drafting affidavits and supporting documents
Drafting Application
Surrender of section 8 license

Premium

21999/-
Inclusive all taxes

Drafting affidavits and supporting documents
Drafting Application
Surrender of section 8 license
Department follow up
Surrender of PAN
Surrender of TDS
Surrender of GST
Newspaper Advertisement

Standard

18999/-
Inclusive all taxes

Drafting affidavits and supporting documents
Drafting Application
Surrender of section 8 license
Department follow up
Surrender of PAN

Procedure for closing Section 8 Company

1

Obtaining Information

Our experts will collect all the requisite documents for closing your section 8 company, which will take approx. 1-2 days.
2

Document Preparation

Our team will prepare the necessary documents and get them notarized as required under the provisions for closing which will take approx 5-7 days.
3

Application Submission

Closure of section 8 company application along with the necessary documents are submitted to the MCA, which is usually approved in about 35-40 days, subject to processing time

Why Close a Section 8 Company?

The existing company can merge with another NGO with same goal sets.

The Company failed to get resources to give back to the community.

The company has debts and it has outstanding left so in order to settle all those the company can be dissolved.

Even the mission has been accomplished successfully that would lead the company to come to a situation where the goal has been satisfied hence it would be dissolved.


In certain cases the mission can become obsolete and hence the company may be not getting the traction they want.

Things to consider while closing a Section 8 company

  • The current base of people who are benefiting from the NGO must be informed, so that they can move on to other NGO.
  • Keep the donors upto date with how the funds are managed as such.
  • The Debts has to be addressed and then in case of not sortable situation then they can file for bankruptcy but it all depends on the board decision.
  • The employees as a part of the initiative must be informed and severance pay must be made.
  • The board meeting Decision is one of the important thing to consider in terms of making a call on how the remaining funds are handled.

FAQ’s About Closing a Section 8 Company

00+

Satisfied Entrepreneurs

00+

Team strength

00 years+

Professional Experience

00+

Services delivered

WHY CHOOSE KSHITIJ CONSULTANCY ?

Well with highly qualified professionals in our team along with the technology gives edge over others, as a result highly rated professional services with full customer satisfaction is assured. We help to grow and manage your business letting you to concentrate on your business.

Testimonial's

  • “Prompt, courteous and competent. We are confident in KSHITIJ GROUP SERVICES, which is why there is longevity in the client relation”. Mr. Shashank Ghosalkar
    Managing Director,
    Focus Facility Services Pvt Ltd

  • “Great personal services at a fair price. I always feel that they are looking out for our best interest.”. Mrs. Aarti Mishra
    Managing Director
    White Feather Facility Services Pvt Ltd

  • “KSHITIJ Group people believe in approaching challenges head on and when these challenges relate to Statutory Compliances, we relish the opportunity to innovate solutions.” Mr. Subrodh
    Company Secretary
    Ramaicca India Ltd