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Annual Compliance For Section 8 Companies With CA Desk
Make your Section 8 company compliant through cadesk’s simplified process.
Returns & Minutes Filing
Drafting & Filing Financials
Returns & Minutes Filing
Drafting & Filing Financials
Annual Compliance for Section 8 Companies
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.
Cadeskindia’s section 8 company compliances ensures these tasks are taken care of for you by experts. It saves your time and energy so that you can focus on the core activities of the company.
Benefits of Being Compliant
- Increases the credibility of the company
- Builds trust
- Helps avoid legal complications
- Avoid paying penalties
Checklist for Section 8 Annual Compliances in India
- Filing ADT-1 (Appointment of Auditor)
- Books of Accounts Maintenance
- Statutory Registers Maintenance
- Convening meetings
- Report of directors
- Financial statements preparation
- Filing of Income Tax returns
- Financial statements filing (AOC -4)
- Annual returns with ROC filing, MGT -7
Documents Required for Section 8 Annual Compliances Registration
The below-listed documents are mandatory to complete the registration of Section 8 Annual Compliances in India,
- Memorandum of Association (MoA)
- Article of Association (AoA)
- Digital signature Certificate (DSC) For Signing Online.
- Certificate of Company Incorporation
Difference Between MGT 7 and MGT 8
MGT-7 is an Annual Return Form that has to be filed by all Companies registered in India without fail which includes the Registrar of Companies (RoC) on the Ministry of Corporate Affairs website.
MGT 7 applicability includes Every private and public company registered under the Companies Act of 2013 or any earlier Companies Act is required to submit their annual return using e-Form MGT-7
However, Form MGT-8 is a certification provided on a company's annual return, by a practicing company secretary based on the Companies Act 2013, under Section 92(2).
Applicability of MGT 8: The following types of firms shall have their annual returns approved by a working company secretary for MGT 8 applicability as per the regulations under Section 92(2) of the Companies (Management and Administration) Rules, 2014:
- Listed Company, or
- A company with a paid-up share capital of ₹ 10 Crores or more, or
- A company having a turnover of ₹ 50 Crores or more
Only One Person Companies (OPCs) and small businesses have MGT 7A applicability, an abbreviated annual return form. All OPCs and small businesses with Indian corporate registration must submit the MGT-7A form, which falls under the MGT 7A applicability, to the Registrar of Companies (RoC), according to the Ministry of Corporate Affairs' website.
Annual Compliance Tasks
The following are the annual compliance tasks required to be carried out by Section 8 company registration. 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 taxation of section 8 company 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 Cadeskindia 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.
FAQs on Section 8 Company Annual Compliances Made Easy
Yes. By fulfilling the conditions specified by the relevant provisions under the Income Tax Act, Section 8 Companies can claim full exemption. Get started with Section 80G and 12A registration.
Failure to appoint an auditor is punishable with a fine of ₹25,000, which may extend up to ₹5,00,000.
Failure to file director’s consent notice is punishable with a fine of up to ₹50,000 or imprisonment up to six months.
Failure to file annual returns is punishable with a fine of ₹50,000, which may extend to ₹5 lakhs.
- Failure to send a copy of audited financial statements to the members before the annual general meeting, and record the minutes of the meeting are each punishable with a fine up to ₹25,000/-.
- Failure to conduct an annual general meeting is punishable with a fine of up to ₹1 lakh rupees.
- Failure to submit a report on the annual general meeting is punishable with a fine of 1 to ₹5 lakh rupees.
Yes. A Section 8 company is allowed to accumulate or set apart up to 15% of its total income without paying tax.
Yes, the CSR requirement is applicable to Section 8 companies.
Yes, the provisions of GST are applicable to Section 8 companies.
Apart from the list of annual compliances mentioned above, a compliance for Section 8 company may have to perform other compliance tasks depending on the situation. While our package doesn’t include such tasks, you might get it done on request at an additional cost. Examples of such tasks are:
- Director’s consent form (Form DIR 2) to occupy the office within 30 days from the director’s appointment
- Returns form (Form MR-1) within 60 days from the appointment of a managing director, manager, or other key managerial posting.
In case your company takes donations or funding from donors, then those incomes are eligible for tax exemptions. To claim that exemption, the company has to comply with the conditions specified under Section 11 and register under Sections 80G and 12A. Again, this is not covered under the annual compliance package but is available as a separate service.
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
Why CA Desk?
CA Desk is experienced in assisting Section 8 companies with filing forms and annual returns accurately, ensuring the acceptability of any information submitted to department and ministry websites.
- Our CA/CS will fill out the application and submit it on your behalf
- We guide you through the entire process
- You just need to share the relevant login credentials for the process.
- All of this is done from the comfort of your home
- Cadeskindia has the experience of working with thousands of NGOs and understands the needs of such organisations
- Your information is always safe with us.