What is Strike Off of a Section 8 Company?

Strike Off of a Section 8 Company is the process of legally closing a non-profit company that has either ceased its operations or no longer wishes to continue. Section 8 companies are formed for charitable, social, or non-commercial objectives under the Companies Act, 2013, and are bound by several statutory compliances.

To avoid unnecessary compliance and penalties, it is advisable to strike off a dormant or non-functioning company. The process is done by filing Form STK-2 with the Registrar of Companies (ROC) after obtaining prior approval from the Regional Director (RD) under Section 8-specific provisions.

This legal exit ensures that the company is officially dissolved, its directors are free from compliance responsibilities, and the name is removed from the MCA records.

✅ Benefits of Strike Off for Section 8 Companies

🎯 Provide 7 strong benefit points, written from the client’s perspective.

1️⃣ Eliminates Compliance Burden – Stop filing unnecessary returns and financials
2️⃣ Avoid Late Fees & Penalties – Prevent future MCA penalties for non-compliance
3️⃣ Officially Close a Defunct NGO – Legally shut down inactive operations
4️⃣ Free Directors from Legal Liability – End legal obligations for board members
5️⃣ Clean Exit Strategy – Maintain goodwill with a lawful closure
6️⃣ Save Operational Costs – Avoid audit, tax filing, and regulatory costs
7️⃣ Peace of Mind – Clear legal records and reduce stress from an unused entity

📑 Documents Required for Strike Off Section 8 Company

📂 List all required documents with relevant emojis and brief explanations.

1️⃣ 🧾 Board Resolution – Approval from directors to apply for strike off
2️⃣ 📜 Special Resolution (General Meeting) – Member consent for winding up
3️⃣ 📩 Regional Director's Approval Letter – Mandatory prior permission from RD
4️⃣ 📚 Statement of Accounts (Not older than 30 days) – Authenticated by a Chartered Accountant
5️⃣ 🧑‍💼 Affidavit & Indemnity Bond by Directors – Declaration of no liabilities
6️⃣ 🏦 Bank Closure Proof – Closure certificate of company’s bank account

👤 Eligibility for Strike Off Section 8 Company

🧾 A Section 8 company is eligible to apply for strike off if:

• It is inactive for the last 2 financial years or has not commenced business since incorporation

• It has no liabilities and has closed its bank accounts

• It has obtained NOC from relevant regulatory authorities, if applicable

• A Special Resolution has been passed by members for closure

• It has received approval from the Regional Director, as required specifically for Section 8 companies

Note: Companies with ongoing legal proceedings, pending compliances, or active liabilities are not eligible.

🔄 Process of Getting Section 8 Company Struck Off

🔁 Provide a step-by-step explanation of how the service is executed from start to finish.

1️⃣ Preliminary Check – Verify eligibility, compliances, and liabilities
2️⃣ Board & Member Resolutions – Pass resolutions to approve closure
3️⃣ Obtain Regional Director’s Approval – Apply for and receive permission to close Section 8 company
4️⃣ Prepare Financial Statements – Draft a no-liability statement of accounts
5️⃣ File Form STK-2 with ROC – Submit strike-off form with all attachments and fees
6️⃣ Receive Strike Off Certificate – ROC processes and issues final dissolution order

⏱️ Timeline for Strike Off Section 8 Company

⏳ The complete process typically takes 3 to 6 months, depending on:

• Time taken to obtain Regional Director’s approval

• Speed of document preparation and board/member meetings

• ROC’s internal processing and scrutiny of the application

• Any additional queries or resubmissions required by MCA

Early preparation ensures faster closure with minimal complications.

❓ Frequently Asked Questions (FAQs) about Strike Off Section 8 Company

1️⃣ Can a Section 8 company voluntarily close its operations?
Yes, but only after receiving prior approval from the Regional Director and ensuring no liabilities remain.

2️⃣ Is RD approval mandatory for strike off of Section 8 companies?
Yes, unlike private companies, Section 8 companies must obtain approval from the RD before filing STK-2.

3️⃣ What is Form STK-2?
STK-2 is the prescribed form for voluntary strike off under Section 248 of the Companies Act.

4️⃣ Can I apply for strike off if the company has liabilities?
No, the company must be free of all liabilities, and directors must provide affidavits declaring the same.

5️⃣ Do I need a CA for this process?
Yes, a Chartered Accountant is required to certify financial statements and other filings.

6️⃣ Can a Section 8 company convert to a private company instead of closing?
Yes, conversion is possible, but it involves a separate approval process under RD and MCA rules.

7️⃣ Will my company’s PAN and TAN be canceled too?
After strike off, PAN and TAN become inactive, but should also be formally surrendered.

8️⃣ Can strike off be done online?
Yes, the STK-2 form and supporting documents are filed online via the MCA portal.

9️⃣ Do I need to inform Income Tax or GST authorities?
Yes, it's advisable to file closure intimation with Income Tax and cancel GST if registered.

🔟 Can you help me file for strike off of my Section 8 company?
Absolutely! Our team handles the entire strike-off process from legal approvals to ROC filing.