Annual Filling is a mandatory for every company incorporated in India. The E-form filing along with the required documents must be filed with MCA.

All companies registered under the Companies Act, 2013 or earlier like private limited company, one person company, limited company, and section 8 company is required to file MCA annual return and income tax return for each year irrespective of the fact whether they are working or not. Section-8 Companies are required to conduct an Annual General Meeting at the end of each financial year and file financials and annual return with the Ministry of Corporate Affair to maintain compliance.

Compliance

What is Section-8 Company?

A Section 8 company is a non-profit organisation formed with the objective of promoting commerce, arts, science, sports, education, research, social welfare, and protection of the environment. in a country. Though they are authorized to run a business and earn a profit, the profit can only be utilized for meeting company objectives, and cannot be shared among the members.

Annual Compliances of Section-8 Companies

A Section 8 company is required to adhere to the compliance levied by Registrar of Companies (ROC) and Income tax authorities. Failure to  fulfil their compliance requirements results in paying heavy penalties, and chances are such organizations and their directors’ may even get disqualified for a period of time.

  • Appointment of An Auditor:Under section 139 of the Companies Act 2013, it is mandatory for companies to appoint an auditor. The book of accounts and annual returns of the company shall be audited by the statutory auditor who will be appointed for a period of 5 years.
  • Maintenance of Statutory Registers:The company is required to maintain a statutory register consisting of members, loans obtained, charges created, its directors, etc. as enumerated under section 8 of the companies act 2013.
  • Convening Meeting:Annual general body meeting is to be conducted once a year within 6 months of the end of financial year and other board meetings have to be conducted.
  • Boards’ Report:The Board of Directors of the company shall file their boards’ report in an appropriate manner, consisting of all the financial statements and other annexures. The board report is required to be filed in Form AOC-4.
  • Preparation of Financial Statement of The Company:The company will get the  balance sheet, profit and loss A/C, cash flow statement and other financial statements prepared by the statutory auditor which is to be filed with ROC.
  • Tax Returns:The ITR is required to be filed at the end of every assessment year, before 30th September.
  • Filing of Financial Statements:The financial statement shall be filed in the appropriate form ( E-FORM AOC-4), within 30 days from the date of annual general meeting,
  • Filing Annual Returns:The annual return containing all the information like management details, shareholders’ details will be filed in Form MGT-7 with Registrar of Companies (ROC), within 60 days of the annual general meeting.

Know about the Due dates for filing Section 8 Company Compliances

Section 8 Company should follow the annual compliances within the below mentioned time:

Form No Compliance Due Date Last Date
AOC-4 Directors Report Within 30 days of the Annual General Meeting 29th October
MGT-7 Annual Returns Within 60 days of the Annual General Meeting 28th November
Form ITR -6 Income Tax Returns 30th September 30th September

What is the benefit of following annual compliance of Section 8 of the Company?

The basic reason for meeting the compliance of Section 8 Company is to avoid penalties. Also, it ensures the smooth functioning of the company. Below are some of the listed points:

  • Better Credibility of the Companies.
  • Avoid getting into any legal trouble.
  • To build trust amongst the customers.
  • To avoid penalties.

About the Author

Author is Pulkit Goyal, FCA helps in corporate as well as non-corporate entities taxation system. Has vast experience in FEMA/Transfer Pricing and Valuation of Business Assets, helping foreign companies in opening up of Liaison/ Branch Office in India and complying with various tax laws applicable to foreign companies while establishing a business in India. He is also the founder of Goyal Mangal & Co. Chartered Accountants, a Chartered Accountancy firm established in the year 2011 with its head office in Jaipur and can be reached at pulkit@cagmc.com.

Author Bio

Qualification: CA in Practice
Company: Goyal Mangal & CO.
Location: Jaipur, Rajasthan, IN
Member Since: 08 May 2020 | Total Posts: 3
CA Pulkit Goyal, Partner and Founder of the firm is a fellow member of the Institute of Chartered Accountants of India (ICAI) having experience in the profession of Chartered Accountancy and thorough understanding of the corporate as well as non-corporate entities taxation system. Experience in F View Full Profile

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