What are the annual filing mandates outlined for a Section 8 company? Let’s find out with the help of our Vakilsearch experts.
What Exactly is a Section-8 Company?
A Section 8 company is a non-profit organization founded to promote trade, arts, science, sports, education, research, social welfare, and environmental protection. They are allowed to conduct a business and make a profit, but the profit can only be used to satisfy the predetermined charitable objectives and cannot be split among members.
Is ROC Annual Filing Mandatory for a Section 8 Company?
Every company incorporated in India is required to file an annual return. The E-form filing, along with the necessary papers, must be submitted to MCA. All companies registered under the Companies Act, 2013 or earlier, such as a private limited company, a one-person company, a limited company, and a section 8 company, are required to file an MCA annual return and an income tax return for each year, regardless of whether they are active or not. Section-8 corporations must hold an Annual General Meeting at the conclusion of each fiscal year and file financials and an annual return with the Ministry of Corporate Affairs in order to be in compliance.
What Happens When a Section 8 Company Does Not Comply with ROC Annual Filing Requirements?
A Section 8 company is required to comply with the Registrar of Companies (ROC) and Income Tax authorities. Failure to meet compliance requirements results in significant penalties, and such organizations and their directors may be disqualified for a period of time.
ROC Annual Filing Mandatory for a Section 8 Company
- Under Section 139 of the Corporations Act 2013, companies are required to appoint an auditor. The company’s books of accounts and annual reports will be audited by the statutory auditor, who will be appointed for a 5-year term.
- According to Section 8 of the Companies Act 2013, the company is required to keep a statutory register of its members, loans obtained, charges created, directors, and so on.
- An annual general body meeting must be held within six months of the conclusion of the fiscal year, and other board meetings must be held.
- The annual return, which includes all information such as management collected data and shareholder information, will be filed with the Registrar of Companies (ROC) in Form MGT-7 within 60 days after the annual general meeting.
- The company’s Board of Directors shall file their boards’ report in the prescribed format, which shall include all financial statements and other annexures. The board report must be submitted on Form AOC-4.
- The balance sheet, profit and loss statement, cash flow statement, and other financial statements must be provided by the company. And a statutory auditor must be appointed to audit the report, which is to be filed with the ROC.
- The ITR of the Section 8 company must be filed by the 30th of September at the end of each assessment year.
- Within 30 days of the date of the annual general meeting, the financial statement must be filed in the appropriate form (E-FORM AOC-4).