SEC. 8 COMPANY

What is Section 8 company?

A Section 8 company is a company that is incorporated with charitable objects such as the promotion of commerce, arts, science, sports, education, protection of the environment, religion, charity, etc. It intends to apply all of their gain, income, or other earnings for promoting these objects. However, by promoting it as a non-profit organization, the Act does not stop the company from profit creation but it prohibits distributing profit among members of this organization.
It is mandatory for every company to file annual filings along with the necessary documents to the MCA. All companies that are registered with the Companies Act,2013, or earlier should file annual returns and also income tax returns for every year. Even Section-8 company, NGO should hold an annual general meeting every year and file all necessary returns with the MCA to maintain compliance.

The Section 8 company's Annual Compliance are as follows:

Appointment of An Auditor
As per the Companies Act, 2013, every company has to appoint an auditor for auditing annual returns and book of accounts. The statutory auditor has to be appointed for 5 years.
Maintenance of Statutory Registers
The company should maintain statutory register consisting of members, directors, loans obtained and charges created.
Convening Meeting
Annual general meeting has to be conducted once a year and 6 months after the end of the financial year.
Boards Report
The Board's report shall be filed which would consist of all financial statements and other annexures and it has to be filed in the form AOC-4.
Preparation of Financial Statement of The Company
The company should file a balance sheet, P&L Account, cash flow statement and other statements that are prepared by auditor.
Tax Returns
Before September 30, ITR should be filed at the end of every assessment year.
Filing Financial Statements
The financial statement has to be filed with E-FORM AOC-4, within 30 days from the date of AGM.
Filing Annual Returns
The annual return should be filed in Form MGT-7 with ROC, within 60 days of the AGM.