Section 8 companies must adhere to all the compliances provided by the central government. learn more about the compliance costs right now.
A section 8 company or a non-profit organisation (NPO) is an organisation with the association of people, which is operated for societal betterment. In India, there are different types of non-profit organisations i.e. trust, society, and Section 8 companies. The money generated from this organisation does not belong to its members or any other partners. However, it is used only for the betterment of society.
- The Section 8 company need at least two people and there is no limit of maximum members
- In a society company minimum of seven people are required to be members
- A non-profit company can also be enrolled under Section 8 of the Companies Act with the Registrar of Corporates (ROC).
Section 8 Company Compliance Cost
Section 8 company is registered under the Companies Act, 2013. A Section 8 company usually receives income out of various sources and it is mandatory to record all of it for the basic documentation with the Ministry of Corporate Affairs (MCA). For each organisation, it is important to document the annual income and investigate the budget statements with MCA for every financial year within the provided time period.
The Registrar of Companies (ROC) filing is mandatory regardless of the annual income, whether it is zero or up to a crore. Even if a single transfer is done, it should be recorded and submitted with respect to the yearly compliance of Section 8. It is important for every registered corporation. Both the applications are documented to publish the activities and financial data for an easy financial year.
The outstanding time for the annual filing of a company depends on the date of the Annual General Meeting (AGM). The consecutive default may lead to the removal of the company’s name from ROC’s register, including disqualification of administrators. Also, it has been identified that MCA has actively taken the needed techniques for handling any such losses.
Hence the Section 8 company has to apply with the compliance referred in the said Companies Act. The Section 8 company needs to fulfill the compliances specified by the MCA.
All the NGO / NPO or Section 8 companies must file the returns on an annual basis. For Making your NGO / NPO or Section 8 the Prices start at ₹6999 only. Mandatory annual company compliance charges ₹10,999 for startup companies. You can reach out to the experts at Vakilsearch for any queries. They will help you out in clearing your doubts regarding the prices.
Click here to know more : Section 8 Company Registration
Annual Compliance With Section 8 Companies
The following are the important compliance tasks expected to be conducted by Section 8 companies. All of these are included in the compliance calendar
- Appointment of an auditor: For a company which operates under Section 139 of the Companies Act, 2013 all companies must hire an auditor
- Maintenance of a register: The company should have a statutory account consisting of finances collected, payments developed, its partners, etc as governed under Section 8 of the Companies Act, 2013.
- Assembling meetings: Annual broad meetings and other company-related conferences have to be performed and details regarding the same has to be recorded
- Report by directors: Directors of the company have the full rights to file the annual statement, containing fiscal information and corporate social obligations. The board managers are accountable for this action
- Financial statement of the company: The balance sheet, revenue and loss A/C, cash flow transactions, and other financial allegations to be documented by the company for the earlier financial year
- Tax returns: At the end of the appraisal year, before the 30 September, tax recoveries are to be documented
- Filing of financial statements: The financial statement shall be documented in the application form (E-FORM AOC-4) within 30 days from the period of the last broad body meeting
- Filing returns: Companies want to document the form MGT-7 with the ROC, for filing retrievals within 60 days of the annual general meeting.
Benefits of Section 8 Compliance
There are multiple benefits of registering a company under Section 8 and meeting with the annual compliances. Some of them are discussed below:
- It is very easy to collect funds from venture capitalists in the form of donations. The assurance of the community arrives at the price of improved yearly compliance
- Business holders must accept all the Section 8 Companies Act, Income tax, GST & State Laws
- In addition to the ROC compliances, companies have to fulfill the income tax returns every year by 30 September
- Since the year 2018, the compliance regulation has been improved for Section 8 companies
- There are several benefits of a Section 8 company, for example, limited liability protection, easy to put up the assistance from financial speculators, and ceaseless existence while the fact of the network comes by following the company compliance.
- It is expected for entrepreneurs to follow the Companies Act, Income Tax Act, GST, and State Laws
- Notwithstanding the ROC compliances, companies need to fulfill annual filing aspects each year by 30 September
- From the year 2018, the compliance requirement has been improved now for Section 8 Companies.
How Vakilsearch Can Help in Section 8 Company Compliance?
Section 8 company compliances tasks are one of the most stressful and time-consuming paperwork. If it is not done in time the company has to pay thousands in penalties. So it is better to leave it to the experts. Here at Vakilsearch we deal with a lot of NGOs and Section 8 companies to help them With their annual compliances.
Our team of chartered accountants will fill out your application and submit it on your behalf. You will get complete guidance throughout the process. Section 8 company compliances are made possible from the comfort of your home. Reach out to us right now!
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