Annual Compliance for Section 8 Company- Checklist and Due Dates

Annual Compliance for Section 8 Company

For every Section 8 company in India, there are multiple annual compliance tasks laid down in income tax 1961, and the companies act 2013. These tasks ensure the company's credibility and trustworthiness while helping them avoid penalties for non-compliance issues. Compliance tasks cannot simply be followed towards the end of the year. They must be carried out the entire year throughout multiple activities of your company. 

Here, we have mentioned a checklist for annual compliance for section 8 company along with other requirements of the same. 

Checklist for Annual Compliance for Section 8 Company 

• Filing ADT-1 
• Maintaining statutory registers
• Preparing a directors report
• timely filing of income tax returns
• Filing ROC with annual returns
• Maintaining books of accounts
• Scheduling convening meetings
• Preparing financial statements
• Filing financial statements

Documents Required for Registration of Annual Compliance for Section 8 Company 

Below, we have enlisted various documents mandatory for annual compliance for Section 8 companies in India: 

• Article of association
• Company incorporation certificate
• Digital signature certificate of directors
• Memorandum of association

Annual Compliance Tasks for Section 8 Company 

• Section 8 company registration requires the following annual compliance tasks to be followed throughout the year: 
• Appointment of an auditor for all Section 8 companies in India is mandatory as per the Companies Act 2013. The authorities shall, in fact, appoint an auditor for you. 
• It is also mandatory for Section 8 companies to maintain a statutory register that includes details about charges created, company members, loans, and other crucial details of the company. This is a mandatory rule to tax section 8 as prescribed under the Companies Act. 
• The directors of a Section 8 company shall also file an annual report that consists of corporate social responsibilities and physical data in an accurate manner. The board of directors prepares these reports. 
• Tax returns must be filed toward the end of every assessment year. The deadline for the same is 30th of September. The returns are filed with the registrar of companies using the form MGT-7 within 60 days of the last annual general meeting.
• At the end of every assessment year, it is also necessary to schedule statutory meetings and annual general meetings to conclude the year. 
• There are various financial statements imperative for financial operations in a company, including cash flow statements, balance sheets, profit & loss accounts, and other financial statements. Every Section 8 company must file these financial statements using the E-FORM AOC-4 within 30 days of the annual meeting. 

Penalties for Non-Compliance 

Now that we have understood various tasks for annual compliance for Section 8 companies, let us understand the penalties one can face in case of non-compliance with these tasks. 

• The company can lose its license if the central government concludes that it has been operating against the recommended goals and with dishonesty. 
• Every party involved in the company can hence face imprisonment and monetary fines of up to INR 25,00,000. 
• From the central government and fines levied against the Section 8 company for non-compliance cannot be less than INR 10,00,000 and more than INR 1,00,00,000.  

Due Dates for Filing Tasks of Annual Compliance for Section 8 Company 

Below are the specified due dates for the following annual compliance for Section 8 company: 

• For the director's report, form number AOC-4 shall be filed to the RoC within thirty days of the annual general meeting. 
• For the ITR filing, Form ITR-6 must be filed before 30th September of every financial year. 
• For annual returns, form MGT-7 should be filed within sixty days of the annual general meeting. 
• The annual General meeting should be scheduled using form MGT-15 before 30th September of every financial year. 

Benefits of Being Compliant 

There are various benefits of being compliant, which are as follows: 

• Regular compliance builds trust between the Section 8 company and its customers and also between the company and the government. 
• It improves the credibility of the company as the consumers will show their trust when a company is compliant with all legal matters. 
• Being compliant always helps you avoid legal complications that can harm the reputation of your company in the market.
• Penalties can be huge in case of non-compliance, and being compliant just saves you that money. 

Conclusion 

The tasks for annual compliance for Section 8 company can be tedious and require a sense of expertise to avoid any penalties or unfavourable legal situations. Lawgical India, as a trusted online service provider, can save you energy and time in understanding all the compliance issues first and then following them for every single activity of your company. We will ensure that all legal compliances are taken care of without putting much burden on you. Contact a team to learn more about our services.

FAQs

1. What is annual compliance for a Section 8 company?
It refers to a set of legal filings and procedures like income tax returns, financial statements, and ROC filings that must be completed annually. Lawgical India ensures all your compliance needs are met accurately and on time.

2. Why is annual compliance important for Section 8 companies?
It protects your company from penalties, enhances trust with stakeholders, and keeps your operations legally sound. Lawgical India helps you maintain a clean compliance record effortlessly.

3. What are the major forms to be filed for Section 8 annual compliance?
Key forms include AOC-4, MGT-7, MGT-15, and ITR-6. Our experts at Lawgical India handle all form submissions so you never miss a deadline.

4. When is the due date for ITR filing for Section 8 companies?
Form ITR-6 must be filed by 30th September of every financial year. Let Lawgical India take care of your ITR so you avoid last-minute stress.

5. What happens if my Section 8 company fails to comply?
Non-compliance may lead to heavy penalties, imprisonment, or even license cancellation. Lawgical India helps you avoid such risks with full-year compliance support.

6. Is appointment of an auditor mandatory for Section 8 companies?
Yes, it’s mandatory under the Companies Act 2013. Lawgical India can assist in appointing a certified auditor and managing all related filings.

7. Do Section 8 companies need to hold AGMs?
Yes, an Annual General Meeting must be held every year, and relevant forms must be filed. We handle meeting documentation, notices, and ROC filing on your behalf.

8. Are financial statements mandatory for Section 8 companies?
Absolutely. Cash flow statements, P&L, and balance sheets must be prepared and filed via AOC-4. Lawgical India ensures your financial reports are accurate and compliant.

9. What documents are required for annual compliance?
You’ll need the company’s incorporation certificate, AOA, MOA, DSCs of directors, and financial records. Don’t worry—Lawgical India will manage everything from document collection to final submission.

10. Can Lawgical India manage all compliance tasks year-round?
Yes, our team provides end-to-end compliance solutions so you can focus on your mission while we handle the legal side with zero hassle.