Closure of a Section 8 Company: A Comprehensive Guide
Closure of a Section 8 Company: A Comprehensive Guide A Section 8 company in India is a type of non-profit organization aimed at promoting commerce, arts, science, sports, education, research, social welfare, religion, charity, and protection of the environment. Closure of a section 8 company These companies are formed with the intent of using profits (if any) and other income only for promoting the objectives of the company. They cannot pay any dividend to their members. However, there may arise situations where the company needs to be closed. This article provides a detailed guide on the closure of a Section 8 company . Reasons for Closure The closure of a Section 8 company can occur due to various reasons, including but not limited to: 1. Insolvency : When the company is unable to pay its debts. 2. Voluntary Decision : When the members decide to close the company. 3. Failure to Commence Business : If the company has not commenced business within a year