Closing Section 8

General
1

Hi Everyone - wanted to get advice on closing a section 8 company? Has anyone here done it successfully and can advice on the process, how long it takes and the costs associated? Thanks so much!

2

Thanks for the query. Yes, a section 8 company can be wound-up. It involves two major steps

  1. Conversion from section 8 company to a normal company: This involves shareholders’ approval and obtaining approval of RD for surrender of section 8 license and conversion to a regular company including public notice for conversion and amendment of MOA and AOA upon approval.
  2. Winding up of the normal company: Once converted, the company can be closed through the standard procedures for winding up or strike off as applicable to the new company type, ensuring all assets are transferred to another Section 8 company.
  3. It is necessary to intimate Income Tax, Charity Commissioner and FCRA of such changes from time to time. The entire process may take 4-6 months on average.

CS Sharad Bhargava