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What is Section 8 Company to Private Company Conversion

A section 8 companies is established in order to encourage and nourish the act of arts, commerce science, sports, education, research, social welfare, religion, charity, protection of environment or any such other objective. The Section 8 companies fall under the Companies Act 2013 which would be registered as an Non Governmental Organization. If promoters want to convert their section 8 company to a profit distributing private company then the same can be achieved by filing a application of conversion to regional Director of the region under whose jurisdiction the Company is situated.

Conversion of Section 8 Company to any other form of Company is a very tedious work and requires lots of liasioning with various authorities including Commissioner of Income Tax (CIT), Charity Commissioner, Secretary of state, ROC and RD. A copy of notice convening the Extra Ordinary General Meeting (EGM) has to be send via courier or delivered by hand to these authorities, and if any objections then have to be sorted out.

At Unilex Consultants we provide you a hassle free registration process which would be dealt by our professionals within a time frame of 1-2 months and is subjective to governmental processing time. Our team takes care of the documentation and aids in provide you the realistic estimation of cost.

Documents for section 8 company to private company conversion

EGM notices and documents


Declarations and Affidavits

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Procedure for Conversion of section 8 company to private limited


Passing Special Resolution

Company will pass special resolution in its EGM and file its certified true copy in form MGT 14.

Application to Regional Director

Application in INC 18 has to be made to RD for approval of conversion along with requisite documents.

Newspaper Advertisement

Within 1 week of filing the application to RD, advertisement in two newspaper has to be made in INC 19.

New Incorporation Certificate

Once approval obtained from RD, copy of the same along with amended MOA & AOA to be filed to ROC and in lieu of it, a new COI is issued after conversion.

Mandatory requirements in conversion of Company

All the financial statements and annual returns has to filed upto date prior making the application to the RD.

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.

A certificate from the practicing CA/CS/CWA, stating that all the rules and regulations related to the conversion has been complied with has to be attached.

After effects of the conversion

  • After the conversion, the company cannot claim any privileges and exemptions, by virtue of being registered under section 8 of companies act, 2013.
  • If company any 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 & Protection Fund within 30 days of conversion.

FAQ’s About Section 8 Company to Private Company Conversion


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