Section-8 Company Annual Compliance
Yearly filing is compulsory for every registered company in India. The company must file E-form enclosed with the essential documents with MCA.
Whether the registered company is a limited company, one person company, private ltd company, or section 8 company, they must file MCA annual return and ITR for every year regardless of they are operating or not. A Section 8 company must organize an Annual General Meeting at the end of every financial year and file a balance sheet, account statement, and annual return with the MCA to follow a legal process of being a registered company.
Define Section-8 Company
A Section 8 Company in the form of a Non-profit organization aims to encourage social welfare, education, culture, science, arts, environment protection, and sports in India. There is no restriction on NGO on profit earning, but it must use the profit for fulfilling organization objectives and social interests. NGO cannot distribute profit and income to its member.
What Are The Annual Compliances of Section-8 Companies?
A Section 8 company is liable to abide by the compliances imposed by the Registrar of Companies (ROC) and the income tax department. If any NGO doesn’t adhere to the compliances, it has to face a huge fine, and in some cases, the owner or directors of such firms may be barred for a specific duration of time. Take a look at the Section 8 company annual compliances.
Statutory Registers Maintenance: The Section 8 Company must maintain a statuary register containing information about stakeholders, expenses, loan acquired, director, as explained under section 8 of the companies, act 2013.
Annual General Meeting: A Section 8 Company must conduct an annual general meeting once a year. The company must organize AGM within 6 months before the closing of the financial year.
Financial Statement filing: Financial Statements filing must be done in a correct form( E-FORM AOC-4) within one month from the AGM organizing date.
Annual Returns Filing: The yearly return must consist of all the details, including stakeholders, directors, and management. The Form MGT-7 is the correct form for filing annual returns with the Registrar of Companies (ROC) within 2 months of the annual general meeting.
Employ An Auditor: companies need to employ an auditor under section 139 of the Companies Act 2013. The statuary auditor tenure will be for 5 years, and he will audit the company’s accounting book and annual returns.
Boards’ Report: The board of directors must submit their board’s report in a correct form containing entire financial records, expenses, statements, and other epilogues. The AOC-4 is the correct form for filing the board report.
Financial Statement Preparation For The Company: The Company needs to submit the financial statement that may include profit/loss account, balance sheet, cash flow records, and other financial records organized with the Registrar of the Companies.
Income Tax Return: The company needs to file an annual ITR (Income Tax Return)at the closing of every financial year before 30th September.
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