Section 8 Annual Filing Compliance
All the benefits of a Section 8 company, such as the ability to raise funds in the form of donations and contributions achieved through disciplined compliance.
What are Section 8 Companies?
A Section 8 company is 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.
What Are The Benefits Of Section 8 companies?
- No requirements of minimum paid-up share capital or appointment of a Company Secretary.
- Non-applicability of the maximum number of Directors.
- Non-requirement of Independent Directors.
- No requirement for the constitution of nomination and Remuneration Committee, and Stakeholder Relationship Committee
Checklist For Annual Compliance
- 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 maintained.
- 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 Meeting: Annual general body meeting and other statutory meetings have to be conducted.
- Report by Directors: Directors of the company shall file their annual report in an appropriate manner, consisting of fiscal data and corporate social responsibility. The board directors are responsible for this report.
- 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 30th 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: Limited companies need to file the Form MGT-7 with Registrar of Companies (RoC), for filing returns within 60 days of the annual general meeting.
Immediate compliance after incorporation
Appoint Auditor Within 30 Days:
A Section 8 company is required to appoint the First Auditor within 30 days from the date of its incorporation to take care of all annual financial filings of the company.
Conduct Meeting For The Board Of Directors Within 30 Days:
The first meeting of the Board of Directors must be conducted within 30 days from the date of incorporation. Thereafter, the Board of Directors shall hold at least one meeting every six calendar months.
Annual General Meeting:
A Section 8 company must hold its first Annual General Meeting (AGM) within nine months from the close of the first financial year of the company.