Every Indian-incorporated business must submit an annual Section 8 Company Annual Filling.
The required documents and the electronic form must be submitted to MCA. The MCA annual return and income tax return must be filed by all companies registered under the Companies Act, 2013 or earlier, including private limited companies, one-person companies, limited companies, and section 8 companies, regardless of whether they are working. In order to maintain compliance, Section-8 businesses are required to hold an Annual General Meeting at the conclusion of each fiscal year and submit annual returns and financials to the Ministry of Corporate Affairs.
What exactly is Section 8 Company?
A non-profit organization known as a Section 8 company was established with the goals of supporting social welfare, environmental protection, commerce, the arts, science, sports, education, and research.in a nation. Although they are permitted to run a business and make a profit, the profits cannot be distributed among the members and can only be used to achieve company goals.
Section-8 Companies’ Annual Compliances A Section 8 company must comply with the Registrar of Companies (ROC) and Income Tax Authorities’ requirements. There are severe penalties for not meeting their compliance requirements, and such organizations and their directors may even be disqualified for a time.
Incorporation of an Auditor:
Companies must appoint an auditor in accordance with Companies Act 2013 section 139.The statutory auditor, who will be appointed for a period of five years, will audit the company’s book of accounts and annual returns.
Keeping up with Statutory Registers:
A statutory register of the company’s members, loans obtained, charges incurred, directors, and other information must be kept up to date.as listed in the Companies Act of 2013’s Section 8
Meeting in Context:
In addition to the annual general body meeting, other board meetings must be held within six months of the end of the financial year.
Report of the Board:
The company’s Board of Directors must properly file their report, which includes all of the financial statements and other annexures.Form AOC-4 must be used to submit the board report.
Preparation of the Company’s Financial Statements:
The statutory auditor will audit the company’s balance sheet, profit and loss account, cash flow statement, and other financial statements before they are submitted to ROC.
Tax Documents:
At the conclusion of each assessment year, the ITR must be submitted by September 30.
Financial Statement Submission:
Within 30 days of the date of the annual general meeting, the financial statement must be filed in the appropriate format (E-FORM AOC-4).
Filing Annual Returns:
Within sixty days of the annual general meeting, the annual return with all of the information, including details about management and shareholders, will be filed with the Registrar of Companies (ROC) on Form MGT-7.
What are the advantages of complying with the company’s Section 8 every year?
The primary objective of Section 8 Company compliance is to avoid penalties. Additionally, it ensures the company’s smooth operation. Some of the points are as follows: Greater companies’ credibility. Avoid getting in trouble with the law.