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Section 8 Company Compliance Checklist

Section 8 company compliance checklist comprises important aspects that should not be missed. Go through them right now.

One of the most important purposes of a Section 8 company compliance checklist for preventing penalties. Secondly, it is to assure the smooth functioning of the company. All the companies drafted help in increasing the transparency and reliability of Section 8 companies. 

 Section 8 Company Compliance

All the Section 8 companies will be carrying out the annual compliance duties which are recorded under the Companies Act, 2013 and Income Tax Act, 1961. This guarantees that the company is loyal and valid while averting punishments for non-compliance. Compliance tasks need to be achieved throughout the year and can be tedious.

Experts at Vakilsearch have drafted this annual compliance checklist for Section 8 Companies. make sure to go through the same and verify whether everything is perfect before submitting the documents. It protects your time and energy so that you can concentrate on the day-to-day function of the company.

Annual Compliance Tasks and Other Compliances

Dedicated CA/CS

Make sure that your incorporation of Section 8 companies has a dedicated chartered accountant (CA). After receiving the order to set up your Section 8 company compliance it is mandatory to have an in-house CA. They will be appointed on your declaration which will be the single step of communication to organise your business observation. You may inquire about any issues with the company’s compliance, taxation, and regulatory problems.

Accounting Support

As per the law, you should have an accounting scheme. The accounts team will completely investigate the reports of the company at the end of the financial year on the source of which is useful for them to complete the balance sheet, profit and loss transactions of your company.

Annual Audit Support Services

All the Section 8 company compliance should provide internal audit documentation for every year. Having an in-house dedicated expert will give important assistance for the statutory audit of the corporation.

Income Tax Return Filing

The tax advisory will advise the owners to file the income tax recoveries and the experts will supervise it from time to time about the tax planning and filing, advance tax compensations, etc.

Company Secretary Services

A company secretary (CS) will instruct and review the minutes of the meeting of your company as per the Companies Act of 2013. Minimum 4 board conferences are expected to be conducted in one financial year is the possibility other than small startup companies while in the case of small companies only two board meetings are expected to be conducted.

Financial Statements & Annual Return Filing

At the time when the shareholders authorise your financial accounts in the Annual General Meeting (AGM) division of experts shall document your financial transactions & annual return with the Ministry of Corporate Affairs (MCA) in form AOC-4 & MGT-7 respectively.

Other Compliances

Apart from the annual compliance which are indicated above, a Section 8 company compliance may retain to conduct other compliance assignments relying on the situation. You might provide the documentation on the recommendation at an extra cost. Examples of such tasks are:

Director’s consent form (Form DIR 2) to seize the office within 30 days from the director’s appointment. Repays form (Form MR-1) within 60 days from the appointment of a management controller, manager, or another key administrative posting.

Penalty for Non-Compliance

As previously mentioned, complying with all these rules and regulations is mandatory. If non-compliance occurs then the company has to pay a certain amount of penalty.

  • If anyone declines to comply with any declaration made by the district commission or the state commission or the national commission, as the prosecution may be, shall be punishable with imprisonment for a period which shall not be limited to one month, but which may expand to three years, or with a penalty, which shall not be less than ₹25,000, but which may expand to ₹1,00,000, or with both
  • Notwithstanding anything included in the Code Of Criminal Procedure, 1973 (2 of 1974), the district commission, the state commission, or the national commission, as the case may be, shall have the ability of a judicial magistrate of first-class for the prosecution of offenses under Sub-section (1), and on conferment of such leverages, the district commission, state commission or the national commission, as the litigation may be, shall be considered to be a judicial magistrate of first-class for the objectives of the Code of Criminal Procedure, 1973
  • Protect as otherwise furnished, the offenses under Sub-section (1) shall be strived by the district commission or the state commission, or the national commission
  • 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.

Benefits of Annual Compliance

The benefits which are listed below can be accomplished by complying the relevant regulatory regulations of the business:


In the ordinance of accepting the needs of the ROC and the MCA, the public limited company and company members will boost the status of the company partners in the eyes of the public. Through this operation, a public limited company can improve its section 8 company compliance with regulations. More people would be interested to invest in a public limited company that complies with the requirements of the law.


By fulfilling all needed compliances within a certain period, the public limited company would be available from any form of compliance ordinances. By considering this, a public limited company can meet its goals.

Fewer Burdens

By accepting the provisions of the administration, the public limited company would handle minor disadvantages when it comes to complying with regulations. If compliances are not followed up or documented by the company, it can be an impediment to the improvement of the firm. Hence all the provisions about subordination must be followed by the partners of the Public limited company.

How Vakilsearch Can Help in Section 8 Company Compliance?

Experts at Vakilsearch deal with more than 1000 companies every month. We provide our service to multiple NGOs and Section 8 companies worldwide. When it comes to annual compliance of Section 8 companies our experts are the best. 

All you have to do is reach out to our experts and provide the information. Our in-house chartered accountant will fill out all your applications and submit them on your behalf. Section 8 company compliance are now easily done from the comfort of your home, reach out to Vakilsearch right now.

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