Strike off Section-8 Company

Strike Off Section 8 Companies in Gujarat

L & C TechFin Advisory Pvt Ltd – Your Trusted Consultant for Company Closure

Overview
A Section 8 Company is formed to promote commerce, art, science, sports, education, research, environmental protection, charity, or any other social objective. These companies operate as non-profit organizations and are prohibited from distributing dividends to their members.

The strike-off of a Section 8 Company is a legal process under which the company is dissolved by the Ministry of Corporate Affairs (MCA), relieving it from statutory obligations.

Eligibility for Striking Off a Section 8 Company
A Section 8 Company may apply for strike-off under the following conditions:

1. The company has not commenced business within one year of incorporation.

2. The company has remained inactive for two consecutive financial years and has not applied for dormant company status under Section 455 of the Companies Act, 2013.

3. The objectives of the company have changed, making it difficult to achieve its original purpose.

Advantages of Striking Off a Section 8 Company

1. Cost-Effective Closure – If the company has no liabilities, the strike-off process is a quick and economical way to close it.

2. Reduced Compliance Burden – Once struck off, the company is no longer required to file annual returns and financial statements with the Registrar of Companies (ROC).

3. No Formal Investigation – There is no further scrutiny into the conduct of directors unless the company is revived or liquidated in the future.

4. Simplified Process – The strike-off procedure requires minimal documentation and can be completed within a reasonable timeframe.

Types of Strike-Off for Section 8 Companies

1. Strike-Off by ROC – The Registrar of Companies (ROC) may issue a notice (Form STK-1) to companies that fail to comply with statutory obligations, requiring them to submit the necessary documents within 30 days.

2. Voluntary Strike-Off by Company – The company itself can apply for closure by filing Form STK-2, provided that at least 75% of the members approve the decision through a special resolution.

Documents Required for Striking Off a Section 8 Company

1. Certified true copy of the special resolution and explanatory statement.

2. Memorandum of Association and Articles of Association.

3. Board resolution approving the strike-off.

4. CA/CS/CWA certificate confirming compliance with legal requirements.

5. Statement of assets and liabilities, verified by an auditor.

6. Valuation report from a registered valuer on the market value of assets.

7. Financial statements, auditor’s reports, and annual returns of the last two years.

8. Power of attorney from creditors (if applicable).

9. Director’s declaration confirming compliance with conditions set by the Regional Director.

Procedure for Striking Off a Section 8 Company

1. Board Meeting – Pass a board resolution to approve surrendering the license.

2. General Meeting – Obtain shareholder approval via a special resolution.

3. Filing with ROC – Submit Form MGT-14 within 30 days of passing the special resolution.

4. Submission to Regional Director – File Form INC-18 with the necessary documents and prescribed fees for approval.

5. Final ROC Approval – Upon successful verification, the Registrar of Companies will remove the company’s name from the register.

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• Expert Legal & Compliance Support – We ensure a smooth, hassle-free strike-off process while meeting all regulatory requirements.

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