Strike off Section 8 Companies

Strike Off Section 8 Companies

Hassle-Free Closure of Inactive Section 8 Companies

Close your inactive Section 8 company in India efficiently with Tax Pal Solutions. We provide professional assistance for compliance, conversion, and deregistration, ensuring a smooth, time-bound, and penalty-free closure.

Why Choose Our Service

• Expert guidance on affidavits & documentation drafting
• Direct liaison with C-PACE & Registrar of Companies (RoC)
• 100% compliance with Companies Act, 2013
• Transparent, simplified, and time-bound process
• Dedicated support at every step

What is a Section 8 Company?

A Section 8 company is a non-profit organization in India, registered under the Companies Act, 2013, for purposes such as:

• Charity, social welfare, or environmental protection
• Promotion of arts, science, commerce, or education
• Sports and research initiatives

Key Features:

• Cannot distribute dividends
• Uses profits to further its charitable objectives
• Regulated by the MCA via the RoC in each state

Strike Off Under Section 248 of Companies Act, 2013

Section 248 allows the removal of inactive companies from the Register of Companies. Key requirements include:

• Company must be inactive or never commenced business for at least 2 consecutive financial years
• No pending liabilities, loans, or legal disputes
• Name is removed from the register after ROC approval

Benefits of Striking Off

• Avoid compliance penalties
• Reduce recurring costs (audit, professional, and filing fees)
• Release directors from liabilities
• Fast closure compared to winding-up
• Clean business records for future ventures
• Eliminates legal risks associated with dormant companies

Strike Off vs. Winding Up

Strike Off Process for Section 8 Companies

1. Mandatory Conversion

Section 8 companies must first convert to a regular company under Rule 21, Companies (Incorporation) Rules, 2014, with approval from the Regional Director (RD).

2. Voluntary Strike Off Steps

1. Board Meeting & Resolution: Approve strike-off in board meeting
2. Settle Liabilities: Clear debts, taxes, and legal obligations
3. Shareholder Approval: Special resolution passed with 75% majority
4. File Form MGT-14: Submit special resolution to RoC within 30 days
5. Submit Form STK-2 via C-PACE: Include all documents & declarations
6. Public Notice: C-PACE publishes a 30-day public notice
7. Final Strike Off: RoC strikes off the company’s name if no objections

Note: Bank accounts must be closed and remaining assets disposed or transferred before closure.

Documents Required

• Board Resolution
• Special Resolution (Shareholders)
• Regional Director Approval Letter
• Statement of Accounts (Certified by CA)
• Affidavit by Directors (Form STK-4)
• Indemnity Bond by Directors (Form STK-3)
• Bank Account Closure Proof
• Directors’ PAN & Address Proofs
• MOA & AOA
• Last 3 Years Income Tax Returns
• NOC from Authorities (if applicable)
• Professional Certificate (CA/CS)
• Proof of GST Cancellation
• Proof of FCRA License Cancellation (if applicable)

Involuntary Strike Off

The RoC or C-PACE may strike off a company if:

• Business never commenced within 1 year
• Company inactive for 2+ years
• Statutory filings not submitted
• Non-compliance with Companies Act, 2013

Process: Official Gazette notice → Objection period → Strike off → Directors relieved of compliance (liabilities before strike-off remain enforceable)

Consequences of Strike Off

• Company ceases to exist legally
• Directors released from future compliance obligations
• Shareholders cannot claim returns
• Unpaid statutory dues may impact directors’ eligibility
• Legal disputes existing before strike-off still enforceable

Revival of a Struck-Off Company

• NCLT can restore company under Section 252, Companies Act, 2013
• Application possible within 3 years (company/members/creditors) or 20 years (aggrieved party)
• Dues must be cleared and public notice issued
• Legal status restored and company can resume operations

Costs for Strike Off