Annual Compliances For Section 8 Company
A Section 8 Company is an NGO & one of the forms of companies mentioned in The Companies Act 2013.Like every company registered under this act, Section 8 Company is required to file Compliances as prescribed in the Act.
A Section 8 Company is registered for promoting sports, art, science, religion, charitable activities, etc. These companies are in obligation to file annual and event-based (one-time) compliances with The Ministry of Corporate Affairs.
Benefits of Filing Compliance
The following benefits can be achieved by the section 8 company by filing compliances on time:

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Avoid Penalties
Non-filing of compliances can attract penalties and fines for the company.
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Building Trust
A company filing compliance and disclosing financial information on time is considered as trustful in the eyes of suppliers, vendors, and customers.
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Transparency of Operations
Filing of compliances reveals the actual situation prevailing in company operations. Filing of compliances such as financial returns can reveal about the financial health of the company.
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Avoid any Legal Issues
Non-filing of compliances can give rise to legal consequences such as notice from The Ministry of Corporate Affairs. Therefore one should file compliances on time to avoid any legal troubles.
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Credibility
It is easier for a company to get financial aid and market credit in case the compliances are timely filed than a company whose compliances are not appropriate.
List of Annual Compliances for Section 8 Company
Annual compliances are the compliances that are obligatory to be filed at regular intervals. These are periodical in nature and constitute a liability for the company to file.
The list of annual compliance for a Section 8 Company is as follows.
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Appointment of Auditor
Every Section 8 Company needs to appoint an auditor to take care of books of accounts for the company. Appointment of Auditor is must for every Section 8 Company.
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Maintenance of Books of Accounts
Every Section 8 Company is expected to maintain its books of accounts periodically. This includes all the transactions related to income, expense, and donations.
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Maintenance of Statutory Registers
It is mandatory for the section company to maintain statutory registers. This will provide an overview of the working structure of the company.
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Convene Statutory Meetings
Section 8 Companies are under obligation to convene a meeting of the board of directors and meeting of shareholders.
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Preparation of Financial Statements
Section 8 Company needs to prepare its financial statements. Financial statements are a record of financial transaction that occurred in the company.
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Income Tax Returns
Every Section 8 Company is under obligation to file income tax returns by 30th September of the following financial year.
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Financial Statement Returns Filing (AOC-4)
It is mandatory for a Section 8 Company to file AOC-4 along with supporting documents. This return comprises details of the financial statements of the company. This is filed within 30 days of the date of annual general meeting.
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Annual Return Filing (MGT-7 -ROC Annual Returns)
The Section 8 Company will file its annual return with the Ministry of Corporate Affairs through form MGT -7.
One-Time Compliances for Section 8 Company
One-time or event-based compliances are those which are filed only on the occurrences of the concerned event. These are non-repetitive and are not needed to be filed periodically.
The obligation to file such compliance occurs because of the happening of a specific event. The list of event-based or one-time compliances is as follows
- Receipt of share application money.
- For Allotment of shares.
- Transfer of shares.
- In Appointment/Resignation of directors.
- In Appointment /Resignation of Managing Director/ Whole Time Director.
- Executing agreement with related parties.
- Any Change in the Bank signatories.
- Any Change in the statutory auditor.
- Additional Compliances- Registration for 80G and 12AA(Not Mandatory)
Due Dates for Section 8 Company Compliances
A Section 8 Company should avoid penalties and fines by filing compliances on time. Below are the due dates for filing of compliances for a Section 8 Company.
COMPLIANCE |
DUE DATE |
AGM (Annual General Meeting) |
30 th September |
AOC-4 |
Within 30 days of AGM |
MGT-7 |
Within 60 days of AGM |
Income Tax Return |
30th September |
Penalties for Non-Filing of Compliance
Every Section 8 Company should file compliances on time and with necessary records. Failure to do the same can attract heavy penalties and fines.