A society is a widely used legal structure in India for carrying out charitable, educational, religious, cultural, scientific and social-welfare activities. It is generally governed by the Registrar of Societies under the applicable central or state law. However, as the organisation grows, expands into different states, receives institutional funding or collaborates with companies, the society structure may become less suitable for managing complex governance, financial reporting and regulatory responsibilities.
In such cases, the society may register itself as a Section 8 company under the Companies Act, 2013. A Section 8 company offers a more structured framework through a board of directors, statutory records, annual filings and centralised regulation by the Ministry of Corporate Affairs. Section 366 permits an existing society to register under Part I of Chapter XXI as a company limited by guarantee. The conversion is subject to member approval, prescribed documentation, creditor consent and compliance with the Companies Act and applicable rules.
Meaning of a Section 8 Company
A Section 8 company is a company established for promoting charitable or similar objects such as education, commerce, art, science, sports, research, social welfare, religion, environmental protection or any other object beneficial to society. Unlike an ordinary commercial company, its primary objective is not the distribution of profit among its members. Any income, profit or surplus generated by a Section 8 company must be applied towards the promotion of its objects. The company is prohibited from declaring or paying dividends to its members. This restriction does not prevent the company from charging fees, receiving donations, earning service income or generating a reasonable surplus.
It only requires that the surplus be retained and used for the organisation’s approved non-profit activities. A Section 8 company may also be permitted to omit the words “Limited” or “Private Limited” from its name after the required licence is granted. In the case of a society registering as a company limited by guarantee, the Registrar may issue the Section 8 licence in Form INC-16 upon being satisfied that the proposed company’s objects and restrictions comply with section 8.
Can a Society Be Converted into a Section 8 Company?
A society can legally register itself as a Section 8 company under section 366 of the Companies Act, 2013. For the purposes of Part I of Chapter XXI, the expression “company” includes a partnership firm, limited liability partnership, cooperative society, society and any other business entity formed under another law. Section 366 allows an eligible entity consisting of two or more members to register as an unlimited company, a company limited by shares or a company limited by guarantee.
The Companies (Authorised to Register) Rules, 2014 provide a specific route for a society to register as a company limited by guarantee under section 8. The process is commonly described as a “conversion,” although legally it is a statutory registration of the existing society as a company. It should not be confused with the incorporation of an entirely new Section 8 company followed by a separate transfer of the society’s assets, contracts and activities. Registration under section 366 provides legal continuity because the Companies Act itself deals with the vesting of property, continuation of liabilities and continuation of pending proceedings.
Legal Context Governing the Conversion
Section 8 of the Companies Act, 2013
Section 8 lays down the essential conditions for the formation and functioning of a non-profit company. The proposed company must have charitable or similar objects, must apply its income and profits towards those objects and must prohibit the payment of dividends to its members.
During the conversion process, the society must demonstrate that its existing and proposed objects satisfy section 8. All members are also required to provide a declaration that the company will comply with the restrictions relating to utilisation of income and prohibition on dividend distribution.
Sections 366 to 374 of the Companies Act, 2013
Section 366 identifies the entities capable of registering under the Companies Act and prescribes the manner in which members must approve the registration. Section 367 provides for the issue of a certificate of registration by the Registrar after compliance with the applicable provisions.
Section 368 deals with the vesting of movable and immovable property in the registered company. Sections 369 and 370 preserve existing liabilities and pending legal proceedings. Section 371 explains the effect of registration, while section 374 imposes obligations such as obtaining secured-creditor consent, publishing a newspaper advertisement and submitting documents to the former registering authority for dissolution of the original entity.
Companies (Authorised to Register) Rules, 2014
The Companies (Authorised to Register) Rules, 2014 prescribe the operational requirements for filing the application. The rules specify the documents required from a society, including details of its members, governing body, proposed directors, registration certificate, secured-creditor consent, member approval, latest income-tax return and declaration regarding compliance with section 8.
The rules also provide that a society that has not filed its annual or other statutory returns with the Registrar of Societies is not eligible to apply under section 366 until those defaults are regularised.
Applicable Society Law
The society must simultaneously comply with the Societies Registration Act, 1860 or the relevant state legislation under which it was registered. The society’s memorandum, rules and bye-laws should be reviewed to determine the procedure for calling a general meeting, amending the objects, approving the change in legal structure and eventually dissolving or closing the society registration.
Since society laws differ between states, the process before the Registrar of Societies may not be identical throughout India. Some states may require a separate resolution, prior permission, publication, submission of audited accounts or additional dissolution documents.
Eligibility Conditions for Conversion
Valid Registration of the Society
The applicant must be a legally registered society. It should possess a valid certificate of registration issued under the Societies Registration Act, 1860 or the applicable state law. A certified copy of this certificate forms part of the documents submitted with the application.
The society should also ensure that all amendments made to its memorandum, rules or bye-laws have been properly approved and recorded with the Registrar of Societies. Any mismatch between the society’s official records and the documents submitted to the Registrar of Companies may lead to resubmission or rejection.
Minimum Number of Members
Section 366 permits registration by an eligible entity consisting of two or more members. The applicable rules further provide that an entity having fewer than seven members must register as a private company.
Consequently, a society with two to six members may register as a private Section 8 company, whereas a society with seven or more members may consider registering as a public Section 8 company, subject to the requirements applicable to the selected category.
Objects Consistent with Section 8
The society’s objects must be charitable, educational, religious, scientific, cultural, social or otherwise consistent with section 8. Objects that permit private profit, distribution of surplus, personal benefit to members or unrestricted commercial activities may need to be removed or suitably modified.
The proposed memorandum of association should clearly explain the principal objects of the Section 8 company. The objects should ordinarily remain aligned with the society’s existing activities so that the conversion does not appear to create an unrelated organisation or divert charitable property to a different purpose.
Compliance with Annual Filing Requirements
Before filing the conversion application, the society must verify that all annual returns, governing-body lists, financial statements and other filings required under the applicable society law have been completed.
The Authorised to Register Rules expressly provide that a society that has not filed its statutory annual or other returns with the Registrar of Societies is not eligible to apply under section 366. Therefore, all historical defaults should be regularised before the MCA filing is initiated.
Approval of Members
The members of the society must approve the proposed registration at a duly convened general meeting. Section 366 generally requires the assent of a majority of members present personally or through proxy where proxy voting is permitted.
Where the liability of the members is not already limited under another law and the society seeks registration as a limited company, the required majority must consist of at least three-fourths of the members present personally or through proxy at the meeting. The society’s own bye-laws may prescribe a higher voting threshold, in which case the higher requirement should also be followed.
Declaration of Guarantee Amount
A society registering as a Section 8 company is generally registered as a company limited by guarantee. The members must therefore pass a resolution declaring the amount that each member undertakes to contribute towards the company’s liabilities if it is wound up.
The guarantee does not ordinarily have to be deposited at the time of incorporation. It represents a contingent commitment that becomes relevant in the event of winding up. The amount of guarantee and the liability of each member must be clearly stated in the resolution and constitutional documents.
Consent of Secured Creditors
Where the society has borrowed money against security or created a charge over any of its assets, written consent or a no-objection certificate must be obtained from every secured creditor.
This requirement protects creditors from having the legal structure of the borrower changed without their knowledge. The society should disclose all secured loans, mortgages, hypothecations and charges and should not treat a loan as unsecured merely because no charge was registered with the Registrar of Societies.
Preliminary Due Diligence Before Conversion
Before passing the conversion resolution, the governing body should conduct a detailed review of the society’s legal, financial, tax and operational position. This review should cover the registration certificate, memorandum, bye-laws, membership register, governing-body records, annual filings, audited accounts, tax returns and statutory registrations. The society should identify all movable and immovable properties owned or used by it. Title deeds, lease agreements, allotment letters, vehicle registrations, intellectual-property records and investment documents should be examined to determine whether any authority, donor or lender approval is required.
All loans, creditors, employee dues, tax demands, contractual obligations and pending legal cases should also be identified. The conversion does not eliminate existing liabilities, and non-disclosure of material obligations may attract legal consequences for the society and its proposed directors. Due diligence should additionally cover income-tax registration, donor-deduction approval, GST registration, FCRA registration, NGO Darpan registration, CSR-1 registration, labour registrations and sector-specific licences. Each registration should be examined separately because registration as a Section 8 company does not automatically update every approval held in the society’s former name.
Detailed Procedure for Conversion
Step 1: Review the Society’s Memorandum and Bye-Laws
The first step is to examine the society’s constitutional documents. The governing body should determine whether the bye-laws permit amendment of the objects, alteration of the organisational structure or dissolution of the society.
The provisions relating to notice, quorum, voting, proxy, special meetings and approval thresholds should be carefully followed. Where the bye-laws do not adequately authorise the proposed action, an amendment may be required before the conversion resolution is passed.
Step 2: Regularise Pending Society Compliances
All pending filings before the Registrar of Societies should be completed. This may include annual lists of governing-body members, audited financial statements, activity reports, renewal applications and intimations of earlier amendments.
The society should obtain filing acknowledgements or certified copies wherever possible. These documents may be required to demonstrate that the society is active and compliant and that it satisfies the eligibility condition under the Authorised to Register Rules.
Step 3: Hold a Governing-Body Meeting
The governing body should convene a meeting to consider the proposed conversion. The meeting should record the reasons for selecting the Section 8 structure and the anticipated benefits for the organisation.
The governing body should approve the draft notice of the general meeting, proposed name, proposed objects, draft memorandum and articles, names of proposed directors and authority for designated persons or professionals to complete the filing process.
Step 4: Convene a General Meeting of Members
A general meeting should be called by giving notice in accordance with the society’s bye-laws and applicable law. The notice should clearly state that the meeting is being convened to approve registration under section 366 as a Section 8 company limited by guarantee.
At the meeting, the members should approve the conversion, the proposed memorandum and articles, the amount of guarantee, the proposed directors and the authority to execute and submit documents. The minutes should record the number of members present, votes cast in favour and against, use of proxies and satisfaction of the required majority.
Step 5: Finalise the Proposed Directors and Members
The society should identify the individuals who will become the first directors of the Section 8 company. Their Director Identification Numbers, addresses, interests in other entities and consent to act as directors must be collected.
The proposed directors should also provide declarations regarding their eligibility and non-disqualification under the Companies Act. Where a proposed director does not already hold a DIN, the application may be made through the incorporation process in accordance with the prevailing MCA procedure.
Step 6: Obtain Digital Signature Certificates
The proposed directors and authorised signatories should obtain valid Digital Signature Certificates. MCA forms are filed electronically and must be authenticated through digital signatures.
The society should ensure that the names, dates of birth and PAN details appearing in the digital signatures match the information in the proposed directors’ identity documents and MCA records. Inconsistencies may delay form validation.
Step 7: Apply for Reservation of Name
The proposed name should be applied for through the MCA incorporation system. The name must not be identical or deceptively similar to the name of an existing company, LLP or registered trademark. The name should also reflect the organisation’s charitable or non-profit character.
Expressions such as Foundation, Association, Forum, Council, Federation, Chamber, Institute or Development may be considered, depending on the proposed objects. Where the society wishes to retain its existing name, availability must still be checked. The fact that a name is registered with a Registrar of Societies does not automatically guarantee its availability under the Companies Act.
Step 8: Prepare the Memorandum of Association
The memorandum of association should state the proposed name, registered-office state, charitable objects, liability of members and guarantee amount.
It should clearly provide that the income and property of the company will be applied solely towards its objects and that no portion will be paid or transferred to members by way of dividend or profit distribution. It should also contain suitable provisions regarding the treatment of assets upon winding up. The object clause should be drafted with care because it will govern the company’s legal capacity, Section 8 licence and tax-registration position after incorporation.
Step 9: Prepare the Articles of Association
The articles of association should regulate the internal management of the proposed company. They should contain provisions relating to membership, admission and cessation of members, general meetings, voting rights, appointment and removal of directors, board meetings, accounts, audit and use of funds.
The articles should also address conflict-of-interest situations, related-party transactions, powers of the board and procedures for amendment. The provisions should be suitable for a non-profit organisation and should not permit distribution of income or assets among members.
Step 10: Obtain Consent of Creditors and Other Stakeholders
Written consent or no-objection certificates should be obtained from all secured creditors before the filing. Where grant agreements, property allotments or government approvals contain change-of-constitution clauses, the concerned donor or authority should also be informed and its approval obtained where necessary.
Although unsecured-creditor consent is not expressly prescribed in the same manner as secured-creditor consent, the society should ensure that the conversion does not prejudice the rights of any creditor or conceal any liability.
Step 11: Publish Advertisement in Form URC-2
The applicant is required to publish a statutory advertisement giving notice of the proposed registration. Section 374 requires publication in an English newspaper and in a vernacular-language newspaper so that interested persons may submit objections.
Form URC-2 states that any person objecting to the application may communicate the objection to the Registrar within twenty-one days from the date of publication, with a copy to the applicant at its registered office. The advertisement also gives interested persons an opportunity to inspect the proposed memorandum and articles.
Step 12: Prepare and File Form URC-1
Form URC-1 is the principal application for registration under section 366. It captures details of the existing society, proposed company, number of members, guarantee, properties, liabilities, pending proceedings and secured debts.
The form requires supporting documents such as details of members, declaration by proposed directors, affidavit or undertaking relating to dissolution, constitutional documents, society registration certificate, newspaper advertisement, creditor consent, statement of accounts, guarantee resolution and Section 8 declarations.
Step 13: File the Incorporation Forms
Along with URC-1, the society must complete the incorporation process prescribed under Chapter II of the Companies Act. The applicable forms contain details of the registered office, subscribers, first directors, memorandum, articles and Section 8 licence.
The filings must be digitally signed by the authorised applicants and certified by a practising professional where certification is required. All attachments should be clear, complete, consistent and properly executed.
Step 14: Respond to Registrar’s Queries
The Registrar may issue a resubmission notice seeking clarification regarding membership, objects, voting, property, creditors, tax registration, pending litigation or the wording of the constitutional documents.
The applicant should provide a complete and legally supported response within the time allowed. Partial or inconsistent replies may result in further resubmission or rejection of the application.
Step 15: Issue of Section 8 Licence and Certificate of Incorporation
Where the Registrar is satisfied that the society’s objects comply with section 8 and that the statutory requirements have been fulfilled, the Registrar may issue a licence in Form INC-16.
The Registrar will then issue the certificate of incorporation, after which the society stands registered as a company under the Companies Act. The company becomes subject to the provisions of the Act in the same manner as a company originally incorporated under it, subject to the special provisions governing registration under Part I of Chapter XXI.
Step 16: Intimate the Registrar of Societies
After receiving the certificate of incorporation, the organisation must intimate the concerned Registrar of Societies within fifteen days. The intimation should be accompanied by the documents required for dissolution or closure of the society under the applicable law.
The Authorised to Register Rules specifically require this post-registration intimation. The members are also required to provide an undertaking that the necessary documents will be submitted to the authority with which the society was previously registered.
Documents Required for Conversion
Constitutional and Registration Documents
The society should submit its certificate of registration, memorandum of association, rules, regulations and bye-laws. Copies of all amendments made since the original registration should also be included where relevant. These documents establish the existence of the society, its objects, membership framework, governing powers and authority to approve the proposed change.
Membership and Governing-Body Records
A current list containing the names, addresses and occupations of all members should be prepared with proof of membership. The rules require the list to reflect the membership position on a date not more than six clear days before the date of seeking registration. A separate list of the governing-body members and their addresses should also be prepared. These lists should be verified by at least two proposed directors in accordance with the applicable rules.
Members’ Resolution and Meeting Records
The application should include the resolution passed by the members approving registration under section 366. The resolution should clearly state the proposed registration as a company limited by guarantee under section 8 and declare the guarantee amount. The notice of the meeting, attendance sheet, proxy records, minutes and voting results should be retained to establish that the prescribed majority was obtained.
Proposed Director Documents
The society should provide the DIN, identity documents, address proof, passport details where applicable, residential address, consent to act as director and disclosures of interest for each proposed first director. Declarations of non-disqualification and other incorporation-related declarations should also be collected in the prescribed format.
Financial Documents
The latest audited financial statements, statement of assets and liabilities, bank statements, details of loans and the latest income-tax return should be prepared. Form URC-1 also contemplates a recent statement of accounts of the existing entity, duly certified by the auditor where applicable. The figures in the statement should reconcile with the property and liability details disclosed in the application.
Creditor and Charge Documents
Written consent or no-objection certificates from all secured creditors should be attached. Details of secured debts, outstanding amounts, security created and repayment terms should be accurately disclosed. Where a creditor’s consent is conditional, the applicant should ensure that the condition has been fulfilled or properly addressed before filing.
Property Documents
Title deeds, lease agreements, allotment documents, investment statements and records relating to movable and immovable assets should be compiled. These documents may not always be mandatory attachments to the incorporation forms, but they are essential for verifying ownership, completing post-conversion mutation and addressing any property-specific conditions.
Newspaper Advertisement
Copies of the English and vernacular newspaper publications in Form URC-2 should be attached. The publication details, dates, newspaper names and circulation area should be recorded accurately. Any objections received in response to the advertisement should be disclosed and resolved before the application is approved.
Section 8 Declarations
All members must provide a declaration that the proposed company will apply its profits and income towards its objects and will not distribute dividends to members. The detailed objects of the proposed company should be attached with the declaration so that the Registrar can verify compliance with section 8.
Legal Effect of Conversion
Vesting of Property
Section 368 provides that all movable and immovable property, including actionable claims, belonging to the society at the date of registration will pass to and vest in the incorporated company. This statutory vesting creates continuity of ownership between the society and the Section 8 company. Nevertheless, the organisation may still need to update land records, municipal records, bank records, investment accounts, vehicle registrations and other administrative documents.
Continuation of Liabilities
The conversion does not extinguish debts, contractual obligations, employee claims, statutory dues or other liabilities incurred by the society before registration. The Section 8 company remains responsible for such obligations, and creditors may continue to enforce their rights. Conversion should therefore never be used as a method of avoiding existing liabilities.
Continuation of Pending Legal Proceedings
Any suit, appeal, arbitration or other legal proceeding pending by or against the society may continue after registration. The organisation should inform the relevant court, tribunal, authority and legal counsel about the change in legal status and file the necessary application for substitution or amendment of the party’s description.
Dissolution of the Former Society
Registration as a Section 8 company does not eliminate the need to complete the closure procedure before the Registrar of Societies. Necessary documents must be submitted to the former registering authority for dissolution or closure. Until this step is completed, there may be confusion regarding the existence of the society and the status of its records.
Income-Tax Implications
The society’s charitable tax registration and donor-deduction approval should be reviewed before conversion. The Authorised to Register Rules require a society holding registration under the relevant charitable-tax provisions to intimate the income-tax authorities and attach proof of service with Form URC-1. The organisation should not assume that every tax approval will automatically continue merely because the Companies Act provides for statutory registration. The change in name, legal constitution, registration number, governing body and constitutional documents may need to be reported to the income-tax authorities.
The objects contained in the Section 8 memorandum should remain consistent with the objects for which charitable registration was originally granted. A material change in objects or activities may require a fresh application, modification or intimation under the tax law applicable to the relevant year. The organisation should also examine the treatment of accumulated income, corpus donations, restricted funds, depreciation, tax demands and pending assessments. A detailed tax opinion is advisable where the society owns substantial assets or has significant accumulated funds.
GST Implications
GST registration is linked to the legal identity and PAN of the registered person. Where the resulting Section 8 company receives a new PAN, it may be required to obtain a fresh GST registration instead of merely amending the society’s existing registration.
The organisation should plan the transition of invoices, contracts, input tax credit, e-way bill access, electronic ledgers and pending returns. The old GST registration should not be cancelled until all liabilities, returns and transitional requirements have been properly addressed.
FCRA Implications
Where the society holds registration or prior permission under the Foreign Contribution (Regulation) Act, the change in legal constitution must be separately examined. The organisation should review the prescribed forms for reporting changes in name, registration particulars, objects, key functionaries and bank accounts.
Foreign contribution should not be transferred or utilised under the new structure until the FCRA position has been properly regularised. Donor agreements should also be examined because a foreign donor may require prior approval before the grant recipient changes its legal status.
Post-Conversion Compliance
After incorporation, the company should hold its first board meeting, appoint the statutory auditor, authorise bank operations and take custody of the society’s books, records and property documents. The company should update its name and corporate details with banks, donors, employees, vendors, landlords, government departments and regulatory authorities.
New letterheads, invoices, receipts, website disclosures and contractual templates should be adopted. The Section 8 company must thereafter maintain statutory registers, minutes, books of account and financial records under the Companies Act. It must file its financial statements and annual return with the Registrar of Companies and comply with income-tax, audit and other sector-specific obligations.
Restriction on Further Conversion
The Authorised to Register Rules provide that after a society or trust is registered as a company, it cannot apply for conversion into another kind of company for ten years from the date of incorporation.
The restriction does not prevent conversion from a private company to a public company or from a public company to a private company. This condition makes it important for the members to carefully evaluate the long-term suitability of the Section 8 structure before proceeding.
Advantages of Conversion
Conversion into a Section 8 company provides a centralised corporate identity under the Companies Act. It establishes a defined board structure, director responsibilities, statutory record-keeping and annual reporting. The structure may be more suitable for organisations seeking corporate social responsibility funding, institutional grants, multi-state operations and professional governance.
Availability of incorporation and filing records through the MCA system may also improve transparency during donor or lender due diligence. The statutory provisions governing the vesting of property and continuation of liabilities also provide greater legal continuity than a simple transfer of activities to an unrelated newly incorporated company.
Challenges of Conversion
A Section 8 company generally has a more extensive compliance framework than a society. Board meetings, statutory registers, audit, financial-statement filing, annual returns and event-based MCA filings must be completed within the prescribed timelines. The conversion may also involve fresh or amended registrations under income-tax, GST, FCRA, labour and sector-specific laws.
Property mutation and updating of bank accounts, grants and contracts may require additional time. Directors are subject to statutory duties and potential liability for non-compliance. Therefore, the organisation should ensure that its governing body is prepared to operate within a formal corporate-governance system.
Common Mistakes to Avoid
One common mistake is filing the application before completing pending society returns. Since a defaulting society is not eligible to apply, this issue should be resolved at the beginning of the process. Another mistake is passing an incomplete resolution that approves conversion but does not declare the guarantee amount or record the required voting majority. The meeting documents should be drafted specifically in accordance with section 366 and the applicable rules.
Applicants sometimes fail to disclose secured loans, pending cases or restricted grants. Every material liability and legal proceeding should be disclosed because registration does not extinguish them. The society should also avoid assuming that income-tax, GST and FCRA registrations will automatically continue. Each approval should be examined and updated separately. Failure to intimate the Registrar of Societies after incorporation is another significant error. The post-registration intimation and dissolution process should be completed within the prescribed period.
Conclusion
Conversion of a society into a Section 8 company is a strategic restructuring option for non-profit organisations seeking stronger governance, greater transparency, improved credibility and a centrally regulated legal framework. The process is governed by Section 8 and Sections 366 to 374 of the Companies Act, 2013, read with the Companies (Authorised to Register) Rules, 2014. It generally involves approval of members, declaration of guarantee, consent of secured creditors, publication of newspaper notices, filing of Form URC-1 and completion of incorporation formalities with the Registrar of Companies.
However, the conversion should not be viewed as a routine MCA filing. It requires careful review of society laws, tax registrations, GST, FCRA, assets, liabilities, contracts and stakeholder approvals. Proper legal and financial due diligence helps protect charitable assets, ensure continuity of operations and reduce future compliance risks.
Frequently Asked Questions
Q1. Is direct conversion of a society into a Section 8 company permitted?
Ans. Yes. Section 366 of the Companies Act, 2013 expressly includes a society among the entities that may register under Part I of Chapter XXI. The Authorised to Register Rules permit a society to apply as a Section 8 company limited by guarantee.
Q2. Is it necessary to incorporate a separate new company?
Ans. No. The society may use the statutory registration route under section 366. This is different from forming an unrelated company and subsequently transferring the society’s assets and activities to it.
Q3. What happens to the assets of the society?
Ans. The movable and immovable property of the society passes to and vests in the incorporated company under section 368. Administrative updating or mutation of property records may still be required.
Q4. What happens to the liabilities of the society?
Ans. All existing debts, contracts, statutory dues and other liabilities continue after registration. The conversion does not discharge the organisation from obligations incurred before incorporation.
Q5. Is consent of every member compulsory?
Ans. Unanimous consent is not always required. The statutory majority prescribed under section 366 and the voting requirement contained in the society’s bye-laws must be satisfied. In certain cases, at least three-fourths of the members present must approve registration as a limited company.
Q6. Is the guarantee amount paid during incorporation?
Ans. The guarantee is ordinarily a contingent undertaking and is not treated as paid-up share capital. It represents the amount that a member may be required to contribute if the company is wound up.
Q7. Is newspaper publication compulsory?
Ans. Yes. A notice in Form URC-2 must be published in the prescribed English and vernacular newspapers so that interested persons may submit objections.
Q8. Can a society with pending annual filings apply?
Ans. No. A society that has not filed annual or other statutory returns with the Registrar of Societies is not eligible to apply until those defaults are regularised.
Q9. Will the society’s tax registration automatically continue?
Ans. Automatic continuation should not be assumed. The organisation must intimate the tax authorities where required and examine whether an amendment, fresh application or other compliance is necessary.
Q10. Can the Section 8 company distribute profit among members?
Ans. No. Its income and surplus must be used towards its approved objects. Payment of dividend or distribution of profit to members is prohibited.
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