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Conversion of Section 8 Company to Private Limited Company

All you need to know

A Section 8 Company is a Non-Profit Organization (NPO) which is established to promote art, science, commerce, religion, charity, education, protection of the environment, social welfare, sports, research or any other advantageous object i.e. for charitable or not for profit purposes.

These Companies are registered under Section 8 of the Companies Act, 2013.

 

A Private Limited Company is that type of company that offers Limited Liability or legal Protection to its shareholder. Private Limited Company in India lies somewhere in between a partnership firm and a widely owned public company. It can be registered with a minimum of two people. A person can be both a director and shareholder in a Private Limited Company.

 

After effects of conversion of Section 8 Company to Pvt Ltd Company:

 

    • After the conversion, the company cannot claim any privileges and exemptions, by virtue of being registered under section 8 of companies act, 2013.
    • If a company has acquired any kind of immovable property at any concessional rate from the government, then the difference from the market price that time has to be paid.
    • In case of any unutilized income or accumulated profits of the company brought forward from the previous year shall be utilized for the purpose of settle outstanding dues, or any amount due to creditors, suppliers or loans advanced by promoters or members or any amount due to them and in case of any balance it shall be transferred to the investor education and protection fund within 30 days of conversion.

 

KDS is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory and management consultancy services to clients in India and abroad. Incorporating a Limited Liability Partnership is easy, seamless, cheapest and quickest with KDS Apart from an LLP, KDS, also helps entrepreneurs with Private Limited Company Registration, Public Limited Company Registration, Partnership Registration, HUF, One Person Company and Proprietorship Firm Registration easily. You may get in touch with us for free advisory on all the services.

Conditions to fulfill to convert Section 8 Company to Pvt Ltd Co.

Points to make your decision easy

    • Complete Filings: All the financial statements and annual returns have to be filled up to date prior to making the application to the Regional Director.
    • Declaration by the directors: A declaration has to be made by all the Directors, that no income of the Company has been distributed amongst its members, or any persons claiming through them.
    • Certificate from CA/CS: A certificate from the practising Chartered Accountant/ Company Secretary, stating that all the rules and regulations related to the conversion have been complied with has to be attached.

Documents required for conversion of Section 8 Company to Pvt Ltd Co.

Documents required

◉Licence allotted under Section 8
◉Memorandum of Association
◉Articles of association
◉Copy of Board resolutions
◉A certified true copy of the Special resolution passed in the general meeting With the copy of the notice of the general meeting with the explanatory statement
◉Certificate from a Practicing CA/CS/ICWA
◉Optional Attachments, if any

Special requirement

◉Statement of assets and liabilities of the company
◉Copy of Valuation report
◉The audited Financial statements, the board’s report, Annual returns
◉The statement of financial position if applicable
◉Full details of fixed assets transferred
◉Written consent of the lenders, if any loan is outstanding
◉No objection Certificate from the Concerned authority and Sectoral Regulatory Authority

Fill in the Simple Checklist

Our Compliance Manager will get in touch with you to obtain your documents along with a simple checklist. You need to fill up the checklist and submit along with the documents for processing. Our expert team will verify documents and proceed with the conversion of Section 8 company to Private limited Company formalities. All throughout the process, a dedicated Compliance Manager will keep you updated on the progress of the conversion to Pvt. Ltd. Co.

Preparing Documents & INC Form 18

Apart from the Documents provided you, there are some other documents that would be prepared by us such as Notice INC 19, Statement of Assets and liabilities, Certificate of Chartered Accountant/Company Secretary etc. We will prepare all the necessary documents and also we will prepare Form INC 18 for the conversion of Section 8 Company to Private Limited Company with prescribed fees. This form will be proceeded by the office of Regional Director. And proceed with the final filing process.

Fresh certificate of Incorporation

Once we prepare and file INC Form 18, we will get approval. So as to the final procedure we will proceed to obtain a fresh incorporation certificate of Incorporation by filing a certified true copy of the approved application to the RD within the 30 days in form INC 20 along with the prescribed fees. As soon as we obtain the fresh Certificate of Incorporation for the private Limited company, Licence granted under Section 8 shall be permanently revoked and the name and the status of the company stand changed.

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