Section 8 Company Compliance
A Section 8 Company is a non-profit organization established under the Companies Act, 2013, aimed at promoting arts, commerce, charity, education, social welfare, religion, science, or environmental protection. Such companies enjoy special privileges but must adhere to specific compliance requirements to maintain their status.
Section 8 Company Compliance
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🏛️ Key Compliance Requirements for Section 8 Companies
| Compliance Area | Description | Timeline/Frequency | Applicable Form(s) |
|---|---|---|---|
| Annual General Meeting (AGM) | Conduct AGM every year to discuss annual report and financials. | Annually | Meeting Minutes |
| Annual Return Filing | File annual return with the Registrar of Companies (RoC). | Within 60 days of AGM | MGT-7 |
| Financial Statement Filing | Submit audited financial statements to RoC. | Within 30 days of AGM | AOC-4 |
| Audit Requirements | Conduct statutory audit of accounts by a qualified auditor. | Annually | Audit Report |
| Income Tax Compliance | File income tax returns and maintain records as a charitable organization. | Annually | ITR Forms |
| Utilization of Funds | Ensure funds are used solely for the objectives defined in MoA (Memorandum of Association). | Ongoing | Internal Documentation |
| Maintenance of Books & Records | Maintain proper books of accounts and records. | Ongoing | Internal Documentation |
| Board Meetings | Hold regular board meetings with minimum prescribed number per year. | At least 4 times a year | Board Meeting Minutes |
| Filing of Resolutions | File certain board/shareholder resolutions with RoC as required. | Within 30 days | MGT-14 |
⚠️ Penalties for Non-Compliance – Section 8 Companies
The Central Government has the authority to revoke the license of a Section 8 company if it is found to be operating fraudulently or deviating from its stated objectives.
Violations can lead to heavy monetary penalties, starting from ₹10 lakh and potentially going up to ₹1 crore.
Directors and officials responsible for the default may face imprisonment and/or fines.
Penalties could extend up to ₹25 lakh or more, including imprisonment or both.
If it is proven that the company’s affairs were conducted dishonestly, officials will be prosecuted under Section 447 of the Companies Act.
⏰ Deadlines for Submitting Compliance Documents
Timely adherence to compliance requirements is critical for avoiding penalties.
Section 8 companies must strictly submit all filings and documents within prescribed deadlines.
Consistent compliance helps maintain the company’s good standing and eligibility for benefits.
Why Choose Accura Tax Solutions Services?
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Expert Guidance: Navigate complex regulations with ease.
Timely Filings: Ensure all deadlines are met without stress.
Penalty Avoidance: Stay protected from fines and legal hassles.
Personalized Support: Tailored services for your organization’s unique needs.
Event-Based Annual Compliances of Section 8 Company
| Event | Description | Compliance Requirement |
|---|---|---|
| Transfer of Shares | When shares are transferred from one member to another. | Update share registers, file necessary forms |
| Allotment of Shares | Issuing new shares to members or investors. | Record allotment and file required forms |
| Appointment/Resignation of Directors | Changes in board members. | File DIR-12 with RoC |
| Appointment/Resignation of Auditors | Changes in statutory auditors. | File ADT-1 with RoC |
| Modification in Company’s Name | Change in the registered name of the company. | File relevant forms with RoC |
| Modification in Company’s MOA | Changes in the Memorandum of Association. | Obtain approval, file with RoC |
| Appointment of Key Managerial Personnel | Hiring key executives like CEO, CFO, Company Secretary, etc. | File necessary forms with RoC |
| Receipt of Share Application Money | Money received against share application. | Proper accounting and compliance |
| Any Alteration in Company’s Structure | Changes in shareholding pattern, capital structure, or management. | Comply with RoC filing requirements |
Tax Compliance for Section 8 Companies
Section 8 companies must be registered under Section 12A of the Income Tax Act by submitting Form 10A to the Principal Commissioner.
To qualify for tax exemptions, companies must comply with the conditions under Section 11 of the Income Tax Act.
For donations to be eligible for tax deduction, companies should obtain approval under Section 80G by filing Form 10B.
Proper adherence to these tax compliance steps enables Section 8 companies to enjoy exemptions and benefits while maintaining transparency.
Documents Required for Annual Compliances of Section 8 Company
| Compliance Area | Description | Required Documents |
|---|---|---|
| Designation of Auditor | Appointment of an auditor every year to audit the company’s financial records. | Auditor appointment letter and consent forms |
| Keeping Records | Maintenance of statutory registers for members, loans, charges, and investments. | Statutory registers and registers of members, loans, charges |
| Management of Financial Statements | Preparation and presentation of annual financial records to Registrar of Companies (RoC). | Trading Account, Profit & Loss Account, Balance Sheet |
| Income Tax Return Filing | Filing the company’s income tax returns annually as per the Income Tax Act. | Filed Income Tax Return (ITR) |
| Preparing Director’s Report | Annual report by directors outlining company performance and activities. | Director’s Report |
| Conduct Board Meeting | Holding periodic board meetings to discuss company affairs and approve financial statements. | Board Meeting Minutes |
| Conduct Annual General Meeting (AGM) | Holding AGM to discuss annual performance and obtain shareholder approvals. | AGM Notice, Agenda, Minutes |
| Filing of Financial Return with RoC | Submission of financial statements and related forms with the Registrar of Companies. | Form AOC-4 (Financial Statements) |
| Filing of Annual Return with RoC | Submission of annual return containing company’s details and structure. | Form MGT-7 (Annual Return) |
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Why choose us?
Accura Tax Solutions Services offers complete compliance solutions for Section 8 Companies — so you can focus on your mission while we handle the paperwork.
- Experts in NGO & Section 8 Compliance
- Timely Filing of Annual Returns & Financials
- Assistance with Board Meetings & Resolutions
- Income Tax & 80G/12A Compliance Support
- Affordable Packages with Ongoing Support
- Local Guidance in Safidon & Nearby Areas
- Transparent Process with No Hidden Charges
- Trusted by NGOs, Trusts, and Social Enterprises
