Strike off Section 8 Companies
Strike off Section 8 Companies in Jaipur.
Introduction
Ideally, anybody operating a not-for-profit corporation should register it under Section 8 of the Companies Act 2013. A company may not add the phrases limited liability or joint stock company after the keyword of the company once it has been registered under Section 8 as a public or private company. A partnership company can also become a member of the Section 8 Company. It is often difficult for these companies to wind up the company because the company has a license to operate a charitable company, this license must be surrendered by converting into a company other than a Section 8 Company.Â
Legal Window provides seamless services for strike-off section 8 companies due to our team of dedicated professionals. You may contact us at 072407-51000 or email admin@legalwindow.in for striking off Section 8 companies and compliance services.
Eligibility to Strike off Section 8 Companies
The company did not start its operations within one year of its establishment.
The company has remained inactive for two consecutive previous financial years and has not applied for the designation of a dormant company under Section 455 of the Act.
Promote Donation
The goals of the Section 8 Company have been changed and the company faces challenges in keeping with the new goals.
Different Types of Strike-off Section 8 Companies
The two categories of strike off Section 8 companies include:
Strike Off by ROC
The Registrar of Companies issues a notice in Form STK-1 (Removal of Names of Companies from the Registrar of Companies) to the Companies and their Directors. The purpose of this notice is to inform the relevant companies of the intention to remove their names from the records and to request that they appoint their representatives and provide the necessary paperwork within thirty days of the date that they receive this notice.
Strike off by Company
After paying off its liabilities, a company has the option of applying in E-Form STK-2 to the Registrar of Companies. A special resolution can be passed to accomplish this, but it needs to be supported by 75% of the members.
Advantages of Striking off Section 8 Companies
The key benefits of winding up Section 8 companies in India are
By registering under Section 8, a company undertakes to comply throughout its existence with the ever-changing compliance under the Companies Act 2013. This can pose problems for companies that do not have effective governance to meet these obligations. As a result, many companies have opted to strike out to avoid this burden.
Running a business without generating revenue incurs significant costs compared to the process of winding up a company. For a Section 8 company that is dormant or lacks any activities, demerger appears to be a viable and cost-effective option.
A company that fails to meet its compliance requirements within a specified time frame often faces significant penalties and fines. In serious cases, these penalties can even disqualify directors from holding office in other companies. An out-of-service condition can also lead to such unfavorable conditions. Delisting the company is becoming the preferred solution to mitigate this problem.
Documents required for Striking off Section 8 Companies
A certified true copy of the special resolution, as well as a copy of the notice of the meeting, including the explanatory statement
Trust Deed or MoA (Memorandum of Association)
Articles of Association
A certified copy of the board resolution
A certified copy of the special resolution passed to approve any other type of conversion, as well as the notice convening the general meeting and the relevant explanatory statement attached there to
Certificate from CA/CS/CWA confirming compliance with the requirements of the law and rules
Statement of assets and liabilities of the company as of the date within thirty days of this date, duly verified by the auditor
A copy of the registered valuer\'s report on the market value of the assets
Financial statements, directors\' reports, annual statements, and auditor\'s reports for each of the two fiscal years immediately preceding the date of application, or for such year if the business exists for only one fiscal year
If there are creditors, a power of attorney is required from each of them
Declaration by the directors that all conditions of the regional director, if any, have been met.
Procedure for Striking off Section 8 Companies in Jaipur
1. Filling out the application provided by us
First, we ask you to fill out a simple questionnaire that will be provided to you by our team.
2. Processing of documents
In the second step, we will request the documents according to the questionnaire you filled in, so that we can arrange them according to the request and for processing.
3. MCA's approval of the conversion
The government will provide approval for conversion if it does not discover any mistakes or anomalies during the verification process.Â
4. Request to strike the converted Private Limited Company
Submission of the relevant application, standard supporting materials, and standard filing costs to the Ministry of Corporate Affairs.Â
5. Permission to Strike Off
The authority will thoroughly examine the filed application and supporting papers before approving a strike-off.
Why choose Legal Window for Striking off Section 8 Companies?
Legal Window ensures seamless services to the end-user. Our professionals are specialized in legal matters and assist our clients. You might be wondering as to what we offer to our clients.
FAQ
Under section 8 of the Companies Act of 2013, a non-profit organization may be registered in India as a trust, a corporation, or a private limited company. A famous company under section 25 of the previous Companies Act of 1956, one of the most popular types of non-profit organizations in India, is equivalent to a section 8 business.
Prevailing statutes prohibit Section 8 companies from choosing a procedure that, unlike other companies, provides for a direct shutdown.
STK-1
Ministry of Corporate Affairs.
It usually takes at least 3 months to officially dissolve a company, but if the process is complex, this time can vary greatly. Generally, however, the company will be dissolved no later than 3 months after the publication of the notice of dissolution in the Gazette.
As the signatures of both directors are required on the documents, this could only be possible when both are available.
Compulsory strike-off and Voluntary strike-off.
The Central Government authorizes the Registrars of Companies of the respective jurisdictions to issue a license to a company under Section 8.
According to the Companies Rules 2014, only a limited liability company can be registered under the Act.
Companies registered under Section 8 may close their company by surrendering their license to operate as a charitable company. Such license may be surrendered by conversion of the company into a normal company other than a company under section 8.