Company registered under section 8 company must:
- have objects like promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, and protection of environment or any such other object.
- apply its profits, if any, or other income in promoting its objects, and
- intend to prohibit the payment of any dividend to its members
When a registered private limited company wants to convert themselves to section 8 company, they have to seek approval from its existing member in AGM/EGM after passing a special resolution in that meeting.
After this, the company needs to file MGT-14 within 30 days from the date of the resolution to the registrar of the company and for further process, the company needs to comply with the below mentioned steps.