We are a small Section 8 company, who cannot afford the cost of dematerialization, and have a single Director-Shareholder doing most of the admin and operations work without any remuneration. Is it beneficial to convert to a Section 8 company, which is limited by guarantee?
Generally, Section 8 company are incorporated limited by guarantee since it is convenient operationally and legally. From donor or other stakeholders perspective, guarantee or shares does not hold much significance for S8. In this case, the conversion can be done under Section 18 of CA 2013 i.e. altering MOA, filings with ROC and issue of fresh COI. The demat requirement which is applicable to S8 company would not be required if converted to guarantee company.
CS Sharad Bhragava