Existing Company to Section 8
Existing Company to Section 8 Company
Sometimes a company evolves from a profit-driven model into a purpose-driven organisation. When the primary goal shifts toward social impact, education, research, charity or community development, converting an existing company into a Section 8 Company becomes the right step.
This change requires careful documentation because the company must surrender profit distribution rights, update its charter documents and apply for a Section 8 licence with MCA.
What We Assist With
• Eligibility check and feasibility assessment
• Drafting Board and shareholder resolutions
• Preparing and filing the Section 8 licence application (INC-12)
• Drafting revised MOA and AOA as per Section 8 structure
• Filing SPICe+/MCA forms for conversion
• Updating PAN, GST, licences and statutory records
• Guidance on 12A, 80G, CSR eligibility and other registrations
• Post-conversion compliance setup for the new non-profit company
Why Companies Choose Section 8
• Operate entirely for charitable or social purposes
• Stronger credibility for grants, donors and CSR partnerships
• Structured governance with limited liability
• Ability to reinvest all earnings into social initiatives
• Accepted legal status across government and corporate sectors
Frequently Asked Questions
1. Can any company convert into a Section 8 Company?
Yes, if its objectives align with charitable, social, research or non-profit activities and shareholders agree to give up dividend rights.
2. Do shareholders lose ownership?
No. They remain members, but they cannot receive dividends or profit distributions after conversion.
3. What approvals are required?
A Board resolution and a special resolution from shareholders, followed by filing the conversion application with MCA.
The primary form is INC-12 (licence application), along with revised MOA/AOA, declarations and SPICe+ filings for conversion.
5. Does the CIN change after conversion?
Yes. The CIN will update to reflect the new Section 8 category.