{"id":884,"date":"2026-03-12T13:11:55","date_gmt":"2026-03-12T13:11:55","guid":{"rendered":"https:\/\/www.mylegalbusiness.com\/blog\/?p=884"},"modified":"2026-03-12T14:24:28","modified_gmt":"2026-03-12T14:24:28","slug":"can-a-section-8-company-be-struck-off","status":"publish","type":"post","link":"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/","title":{"rendered":"Can a Section 8 Company Be Struck Off? Legal Consequences"},"content":{"rendered":"\n<p>A Section 8 Company is formed for charitable and non-profit objectives such as promoting education, research, social welfare, art, environment, and similar causes. These companies enjoy certain benefits under the Companies Act, 2013, but they are also subject to stricter regulatory control.<\/p>\n\n\n\n<p>One common question asked by founders and professionals is whether a Section 8 Company can be struck off from the Register of Companies.<\/p>\n\n\n\n<p>The legal position is that a Section 8 Company cannot normally be struck off directly by the ROC under Section 248, because it operates under a special license granted by the Central Government.<\/p>\n\n\n\n<p>Before closure, the licence must be cancelled and the company may need to convert into a normal company.<\/p>\n\n\n\n<p>This article explains the correct legal process, provisions, and forms involved.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#What_is_a_Section_8_Company\" >What is a Section 8 Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Can_a_Section_8_Company_Be_Struck_Off_Directly\" >Can a Section 8 Company Be Struck Off Directly?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Legal_Provisions_Governing_Closure_of_a_Section_8_Company\" >Legal Provisions Governing Closure of a Section 8 Company<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Section_86\" >Section 8(6)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Section_87\" >Section 8(7)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Section_248\" >Section 248<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Section_455\" >Section 455<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Companies_Incorporation_Rules_2014\" >Companies (Incorporation) Rules, 2014<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Reasons_for_Closure_of_a_Section_8_Company\" >Reasons for Closure of a Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Correct_Legal_Process_for_Closing_a_Section_8_Company\" >Correct Legal Process for Closing a Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Procedure\" >Procedure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Consequences_of_Closure\" >Consequences of Closure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Revival_of_a_Struck_Off_Company\" >Revival of a Struck Off Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Section_8_Company\"><\/span><strong>What is a Section 8 Company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Section 8 Company is a non-profit company registered under Section 8 of the Companies Act, 2013.<\/p>\n\n\n\n<p>It is established for purposes such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Education and research<\/li>\n\n\n\n<li>Social welfare and charity<\/li>\n\n\n\n<li>Promotion of art, culture and sports<\/li>\n\n\n\n<li>Environmental protection<\/li>\n\n\n\n<li>Religious or charitable activities<\/li>\n<\/ul>\n\n\n\n<p>Unlike other companies, profits cannot be distributed to members. All income must be used only for to promote the company\u2019s objectives.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_a_Section_8_Company_Be_Struck_Off_Directly\"><\/span><strong>Can a Section 8 Company Be Struck Off Directly?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In general, a Section 8 Company cannot be directly struck off by the ROC under Section 248.<\/p>\n\n\n\n<p>This is because:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A Section 8 Company operates under a license issued by the Central Government.<\/li>\n\n\n\n<li>As long as the license exists, the company must continue to comply with the conditions of Section 8.<\/li>\n\n\n\n<li>Therefore, the license must first be revoked or the company must convert into another type of company.<\/li>\n<\/ul>\n\n\n\n<p>Only after the license is cancelled or the company is converted into a normal company can strike off under Section 248 be applied.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Legal_Provisions_Governing_Closure_of_a_Section_8_Company\"><\/span><strong>Legal Provisions Governing Closure of a Section 8 Company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The closure or removal of a Section 8 Company is governed by the following provisions of the Companies Act, 2013:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_86\"><\/span><strong>Section 8(6)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Provides that the Central Government may revoke the license of a Section 8 Company if it:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Violates license conditions<\/li>\n\n\n\n<li>Acts fraudulently<\/li>\n\n\n\n<li>Operates against its stated objectives<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_87\"><\/span><strong>Section 8(7)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After revocation of license, the government may direct the company to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Convert into another type of company, or<\/li>\n\n\n\n<li>Wind up the company.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_248\"><\/span><strong>Section 248<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Provides the procedure for removal of name of a company from the register (strike off).<br>This normally applies after conversion or when the company is no longer operating as a Section 8 entity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_455\"><\/span><strong>Section 455<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Provides for dormant company status if the company wants to remain inactive but not close.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies_Incorporation_Rules_2014\"><\/span><strong>Companies (Incorporation) Rules, 2014<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>These rules prescribe the forms and procedure relating to Section 8 companies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_for_Closure_of_a_Section_8_Company\"><\/span><strong>Reasons for Closure of a Section 8 Company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Section 8 Company may need to be closed due to:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>1. Inactive operations<\/strong><\/p>\n\n\n\n<p>The company is not carrying out charitable activities.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>2. Financial difficulties<\/strong><\/p>\n\n\n\n<p>Lack of funding or resources to continue operations.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>3. Completion of objective<\/strong><\/p>\n\n\n\n<p>The purpose for which the company was formed has already been achieved.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>4. Compliance burden<\/strong><\/p>\n\n\n\n<p>Continuous compliance requirements make continuation difficult.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>5. Violation of license conditions<\/strong><\/p>\n\n\n\n<p>Misuse of funds or activities outside charitable objectives.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Correct_Legal_Process_for_Closing_a_Section_8_Company\"><\/span><strong>Correct Legal Process for Closing a Section 8 Company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The closure generally involves two stages.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 1: Board Resolution<\/strong><\/p>\n\n\n\n<p>The Board of Directors approves the proposal to close the company or convert it.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 2: Member Approval<\/strong><\/p>\n\n\n\n<p>A <strong>special resolution<\/strong> is passed in a general meeting approving:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>surrender of license or conversion.<\/li>\n\n\n\n<li>Filling of form MGT-14.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 3: Application for Revocation of Licence<\/strong><\/p>\n\n\n\n<p>Application is made to the Central Government (through ROC) for revocation of the Section 8 licence.<\/p>\n\n\n\n<p>Relevant forms may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Form GNL-2<\/strong> &#8211; Application to Regional Director for revocation of license.<\/li>\n\n\n\n<li><strong>Form INC-18 \u2013 <\/strong>Application to Regional Director for conversion from section 8 to normal company.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 4: Government Review<\/strong><\/p>\n\n\n\n<p>The Regional Director examines whether:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>liabilities are cleared<\/li>\n\n\n\n<li>assets are transferred to another charitable organisation<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Step 5: Conversion into Normal Company<\/strong><\/p>\n\n\n\n<p>If approved, the company may convert into:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Private Limited Company, or<\/li>\n\n\n\n<li>Public Limited Company.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\"><strong>6. Strike Off After Conversion<\/strong><\/p>\n\n\n\n<p>Once the company becomes a normal company, it may apply for strike off.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure\"><\/span><strong>Procedure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Board Resolution approving strike off<\/li>\n\n\n\n<li>Special Resolution of Members<\/li>\n\n\n\n<li>Settlement of all liabilities<\/li>\n\n\n\n<li>Closure of bank accounts<\/li>\n\n\n\n<li>Filing application in Form STK-2<\/li>\n<\/ol>\n\n\n\n<p>Forms used:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>STK-2<\/strong> \u2013 Application for strike off<\/li>\n\n\n\n<li><strong>STK-3<\/strong> \u2013 Indemnity bond<\/li>\n\n\n\n<li><strong>STK-4<\/strong> \u2013 Affidavit<\/li>\n\n\n\n<li><strong>STK-6<\/strong> \u2013 Notice by ROC<\/li>\n<\/ul>\n\n\n\n<p>After verification, the ROC publishes notice in the Official Gazette and removes the company\u2019s name.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consequences_of_Closure\"><\/span><strong>Consequences of Closure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When the company is finally struck off:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The company ceases to exist legally<\/li>\n\n\n\n<li>Bank accounts cannot be operated<\/li>\n\n\n\n<li>Directors remain liable for past liabilities<\/li>\n\n\n\n<li>Any remaining assets must be transferred according to legal provisions<\/li>\n\n\n\n<li>The Section 8 licence stands cancelled<\/li>\n<\/ul>\n\n\n\n<p>Importantly, assets of a <strong><a href=\"https:\/\/www.mylegalbusiness.com\/section-8-company-registration.php\">Section 8 Company Registration<\/a> <\/strong>cannot be distributed to members.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Revival_of_a_Struck_Off_Company\"><\/span><strong>Revival of a Struck Off Company<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A company that has been struck off may apply for restoration before the National Company Law Tribunal.<\/p>\n\n\n\n<p>Application must generally be filed within three years under Section 252 of the Companies Act, 2013.<\/p>\n\n\n\n<p>If the Tribunal finds that the company was active or the strike off was improper, it may order restoration.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Section 8 Company is a kind of company that cannot be closed down easily. This is because it works under a special license given by the Central Government.<\/p>\n\n\n\n<p>Before closure, the license must be revoked or the company must convert into a normal company. After the Section 8 Company becomes a company it can be closed down by following the usual steps, under Section 248. To do this the company has to fill out a form called Form STK-2.<\/p>\n\n\n\n<p>So people who run Section 8 Companies should make sure they follow all the rules and get all the approvals before they try to close the Section 8 Company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>1. Can ROC directly strike off a Section 8 Company?<\/strong><\/p>\n\n\n\n<p>No. Since the company operates under a Central Government license, the license must first be revoked or the company must be converted.<\/p>\n\n\n\n<p><strong>2. Which authority can revoke the Section 8 license?<\/strong><\/p>\n\n\n\n<p>The Central Government through the Regional Director can revoke the license under Section 8(6).<\/p>\n\n\n\n<p><strong>3. Which form is used for strike off after conversion?<\/strong><\/p>\n\n\n\n<p>After conversion into a normal company, Form STK-2 is used to apply for strike off.<\/p>\n\n\n\n<p><strong>4. Can members receive assets of a Section 8 Company?<\/strong><\/p>\n\n\n\n<p>No. Assets must be transferred to another similar charitable organisation.<\/p>\n\n\n\n<p><strong>5. Can a struck off company be revived?<\/strong><\/p>\n\n\n\n<p>Yes. An application can be made to the National Company Law Tribunal (NCLT) under Section 252.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote has-pale-cyan-blue-background-color has-background is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>ALSO READ<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/startup-funding-guide\/\"><strong>Startup Funding Guide<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/tax-planning-vs-tax-evasion\/\"><strong>Tax Planning Vs Tax Evasion<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/llp-annual-compliance-checklist\/\"><strong>LLP Annual Compliance Checklist<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/is-moa-more-important-than-aoa\/\"><strong>Is MOA More Important Than AOA<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/registration-of-startup-under-dpiit\/\"><strong>Registration of Startup under DPIIT<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/patent-registration-in-india\/\"><strong>Patent Registration in India<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/how-to-remove-director-disqualification\/\"><strong>How to remove Director disqualification<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Section 8 Company is formed for charitable and non-profit objectives such as promoting education, research, social welfare, art, environment, and similar [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":888,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-884","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-section-8-company"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can a Section 8 Company Be Struck Off? 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