Section 8 Company Closure
Winding down a non-profit that's no longer active? Leegal manages the license surrender and strike-off or liquidation filing.
Closing a Section 8 Company
A Section 8 company can generally apply for strike-off like any other inactive company, provided it has no pending liabilities or litigation, but it must also formally surrender its Section 8 license from the Registrar as part of the process.
Where the organisation holds assets or has ongoing obligations, a more formal winding-up process is used instead, with any residual assets typically required to be transferred to another organisation with similar objectives rather than distributed to members.
| Section 8 Strike Off | Regular Company Strike Off |
|---|---|
| Requires surrender of the Section 8 licence first | No special license to surrender |
| Residual assets go to a similar-objective organisation | Residual assets distributed to shareholders |
| Additional scrutiny given the non-profit structure | Standard scrutiny for inactive companies |
| Same no-liability, no-litigation eligibility applies | Same no-liability, no-litigation eligibility applies |
Documents Required
Keep these ready before your consultation to speed up closure.
- Board and member resolution approving closure
- Statement of accounts showing nil or settled liabilities
- Section 8 license copy for surrender
- Details of asset transfer to another similar organisation, if applicable
- Indemnity bond and affidavit from directors
- PAN and incorporation documents of the company
How It Works
Eligibility Assessment
We review the organisation's liabilities and assets to confirm the right route.
Licence Surrender
We prepare the application to surrender the Section 8 licence.
Documentation & Filing
We prepare resolutions, affidavits and file for strike-off or winding up.
Confirmation
We track the application until the company is formally closed.
Licence Surrender
Formally surrendering the Section 8 licence as part of closure.
Strike Off / Winding Up
Filing the appropriate closure route based on your organisation's status.
Asset Transfer Guidance
Support structuring the transfer of residual assets correctly.
Why Close Through Leegal
- Experienced team familiar with the extra steps Section 8 closure needs.
- Clear, upfront pricing with no hidden charges.
- One dedicated point of contact throughout closure.
- Guidance on residual asset transfer requirements.
Talk to Our Team
GS006, Vikash Nagar, Ramgarh Cantt, Jharkhand 829122, India
Frequently Asked Questions
Can a Section 8 company simply apply for regular strike-off?
It follows a similar process to other companies, but must also surrender its Section 8 licence as an additional step.
What happens to the organisation's remaining assets?
Residual assets are generally required to be transferred to another organisation with similar charitable objectives, not distributed to members.
Does closure affect any 12A/80G registration held?
Yes, tax exemption registrations tied to the entity become irrelevant once the company is closed; there's no separate action needed beyond the company closure itself.
How long does Section 8 company closure take?
It generally takes a bit longer than standard company closure due to the licence surrender and asset transfer requirements.
Can members object to closure?
Closure requires board and member approval as part of the process, so member consent is built into the process itself.
Winding Down Your Section 8 Company?
Talk to our team and get a clear plan for closing correctly -- no obligation.