Section 8 Company Compliance
Every Section 8 company has to carry out the annual compliance tasks listed under the Companies Act, 2013 and Income Tax Act, 1961. This ensures that the company is trustworthy and credible while avoiding penalties for non-compliance. Compliance tasks need to be carried out throughout the year and can be tedious.
Penalties for Non-compliance:
Non-compliance may lead to penalties ranging from ₹25,000/- to ₹5,00,000/- and/or imprisonment. It can also lead to the company and its directors being blacklisted for some time.
Annual Compliance Tasks
The following are the annual compliance tasks required to be carried out by Section 8 Companies. All of these are included in the compliance package.
- Appointment of an Auditor: Under Section 139 of the Companies Act 2013, it is mandatory for companies to appoint an auditor. We will appoint an auditor for you.
- Maintenance of a Register: The company shall maintain a statutory register consisting of loans obtained, charges created, its members, etc as enumerated under Section 8 of the Companies Act, 2013.
- Convening Meetings: Annual general body meetings and other statutory meetings have to be conducted.
- Report by Directors: Directors of the company shall file their annual report, consisting of fiscal data and corporate social responsibilities, in an appropriate manner. The board directors are responsible for this report and Vakilsearch will assist them with it.
- Financial Statement of the Company: The balance sheet, profit and loss A/C, cash flow statement, and other financial statements to be filed by the company for the previous financial year.
- Tax Returns: At the end of every assessment year, before the 30th of September, tax returns are to be filed.
- Filing of Financial Statements: The financial statement shall be filed in the appropriate form (E-FORM AOC-4) within 30 days from the last general body meeting.
- Filing Returns: Companies need to file Form MGT-7 with the Registrar of Companies (RoC), for filing returns within 60 days of the annual general meeting.