Introduction to Strike Off of Section 8 Company
A Section 8 Company, registered under the Companies Act, 2013, is formed for charitable or non-profit objectives. However, if such a company becomes inactive, non-operational, or no longer able to achieve its objectives, it may opt for strike off (closure) as per law.
The strike off process is governed by the Ministry of Corporate Affairs (MCA) and must be completed carefully to avoid penalties or future legal issues.
This Saving Mantra guide explains the step-by-step process for strike off of a Section 8 Company in India, including eligibility, documentation, procedure, and post-closure compliance.
What Is Strike Off of Section 8 Company?
Strike off refers to:
- Removal of the company’s name from the Register of Companies (ROC)
- Legal closure of the Section 8 Company
- End of statutory compliance obligations after approval
Strike off is applicable only when the company has no assets, no liabilities, and no ongoing operations.
When Can a Section 8 Company Apply for Strike Off?
A Section 8 Company can apply for strike off if:
- It has not commenced operations, or
- It has stopped operations for a prolonged period
- There are no pending litigations
- All statutory compliances are completed
- No assets or liabilities exist
Eligibility Conditions for Strike Off
Before applying, the company must ensure:
- No pending ROC filings
- No outstanding loans or creditors
- No ongoing legal proceedings
- Proper closure of bank accounts
- Approval from members and directors
Step-by-Step Process for Strike Off of Section 8 Company in India
Step 1: Conduct Board Meeting
- Convene a Board Meeting
- Pass resolution approving strike off
- Authorize director for filing application
Step 2: Obtain Member Approval
- Conduct General Meeting (if required)
- Pass special resolution for strike off
- Record minutes and approvals
Step 3: Settle Liabilities & Close Accounts
- Clear all statutory dues
- Settle creditors, if any
- Close bank accounts
- Prepare statement of accounts
Step 4: Prepare Required Documents
Documents required include:
- Board and special resolutions
- Affidavit and indemnity bond by directors
- Statement of accounts certified by CA
- PAN of company
- MOA & AOA
- Copy of Section 8 license
- Latest financial statements
Step 5: File Application with ROC
- File Form STK-2 on MCA portal
- Attach all supporting documents
- Pay prescribed government fees
Step 6: ROC Verification & Public Notice
- ROC verifies application
- Public notice issued (if required)
- Objections invited within prescribed period
Step 7: Strike Off Order
If no objections:
- ROC issues strike off order
- Company name removed from ROC register
- Section 8 Company stands legally dissolved
Time Required for Strike Off
- Average timeline: 3 to 6 months
- Depends on document accuracy and ROC scrutiny
Post Strike Off Compliance
After strike off:
- Preserve records for future reference
- Respond to any post-closure notices (if any)
- Directors remain liable for past actions
Common Mistakes to Avoid
- Pending annual filings
- Outstanding liabilities or bank balances
- Incorrect financial statements
- Missing approvals or affidavits
- Filing without professional review
Difference Between Strike Off & Winding Up
| Particulars | Strike Off | Winding Up |
|---|---|---|
| Complexity | Simple | Complex |
| Cost | Low | High |
| Time | Shorter | Longer |
| Court Involvement | No | Yes |
Strike off is preferred when the company is inactive and compliant.
How Saving Mantra Helps
Saving Mantra provides end-to-end Section 8 Company strike off services, including:
- Eligibility and compliance review
- Board & member resolutions
- Preparation of STK-2 documents
- MCA filing & follow-ups
- Post-closure advisory support
Disclaimer
This article is for informational purposes only and does not constitute legal, tax, or professional advice. Procedures and requirements under the Companies Act and MCA rules are subject to change. Readers are advised to consult qualified professionals before initiating strike off. Saving Mantra shall not be responsible for decisions taken based on this content.