Annual Compliance for Section 8 Companies

Dobizindia Business Solution Pvt. Ltd.'s Section 8 compliance with the company makes sure professionals handle these obligations. This saves you time and energy, so you can concentrate on the main act

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Basic overview
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Other Compliance
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Overview on Annual Compliance for Section 8 Companies

All Section 8 companies have to perform the annual compliance obligations that are outlined in the Companies Act, 2013 and the Income Tax Act, 1961. This helps ensure that the business is reliable and trustworthy and avoids sanctions for not complying. Compliance-related tasks have to be performed all through the year. They are often tedious.

Dobizindia Business Solution Pvt. Ltd.'s Section 8 compliance with the company makes sure professionals handle these obligations. This saves you time and energy, so you can concentrate on the main activities of the business

Benefits of Being Compliant

  • Improves its credibility in business.
  • Develops trust
  • Helps avoid legal complications
  • Beware of penalty fees.
  • Checklist for Section 8 Annual Compliance in India
  • Filing ADT-1 (Appointment of Auditor)
  • Books of Accounts Maintenance
  • Statutory Register Maintenance
  • Convening meetings
  • Directors' report
  • Preparation of financial statements
  • Filing income tax returns
  • Financial statements filed (AOC 4)
  • Annual returns that include ROC filing, MGT-7

Difference between MGT 7 and MGT 8

All businesses with a registered address in India must submit the MGT-7 form annually, including the Registrar of Companies (RoC) on the Ministry of Corporate Affairs website. However, the Companies Act 2013, Section 92(2) requires a professional company secretary to sign the Form MGT-8, which is an official certification.
MGT 7 applies to every public and private company that is registered under the Companies Act of 2013 or any earlier Companies Act and is required to complete their annual return by submitting an electronic form MGT-7. MGT 8 applicability: The following types of firms must be able to have their annual reports approved by a company secretary who is working to allow MGT 8 application by the rules under Section 92(2) of the Companies (Management and Administration) Rules, 2014:

Listed Company, or

  • A company that has equity capital that is paid up to 10 Crores or more
  • A company with an annual turnover of 50 Crores or more.


The only exception is that one-person companies (OPCs) and small businesses are eligible for MGT 7A eligibility, the abbreviated form for annual returns. All OPCs and small companies with Indian corporate registrations must submit the MGT-7A forms, which are subject to MGT-7A eligibility in the hands of the Registrar of Companies (RoC), according to the Ministry of Corporate Affairs' website.

Documents Required for Section 8 Annual Compliance Registration

These documents are essential for the completion of registration under Section 8. Annual Conformity Reports for India,

  • Memorandum of Association (MoA)
  • Article of Association (AoA)
  • Digital Signature Certificate (DSC) For Signing Online
  • Certificate of Company Incorporation

Know more about the Due Dates For Filing Section 8 Company compliances.

Section 8: The Company must adhere to all compliances within the following timeframe:

Form No Compliance Due Date
MGT-15 Annual General Meeting (AGM) 30 September.
AOC-4 Directors' report within 30 days from the AGM
MGT-7 Annual returns Within 60 days of the AGM
Form ITR-6 Tax returns for income 30 September

Are Section 8 companies entitled to a full tax exemption?

In the event that you meet the requirements specified in the applicable provisions of the Income Tax Act, Section 8 companies are eligible for the full exemption. Start with Section 80G registration and Section 12A.

What are the penalties in the event of not appointing auditors within the specified period?

The failure to provide the director's permission notice could result in the possibility of a fine as high as Rs50,000 or a prison sentence of up to six months.

What happens if I fail to complete my annual returns?

Failure to submit annual returns can result in the possibility of a fine of Rs 50, 000 that could go up to Rs 5 lakh.

What are the penalties for non-compliance with the requirements of Annual General Meetings?

Failure to provide an audited copy of financial statements to members before the annual general meeting and to record them in the minutes is punishable by the possibility of a fine as high as Rs 25, 000. Failure to conduct an annual general assembly can be punished by a fine ranging from Rs 1 lakh to Rs 2 lakh.

What is the punishment for failure to file a director's permission form in conjunction with the RoC?

Inability to submit the director's permission notice could result in the possibility of a fine as high as Rs50,000 or imprisonment for up to six months.

Can a Section 8 company accumulate profit without paying tax?

The Section 8 Company is allowed to set aside or accumulate up to 15 percent of its earnings without tax.

Does the CSR obligation apply to Section 8 firms?

Yes, the CSR obligation applies to Section 8 companies.

Can GST be applied to Section 8 companies? Section 8 company?

Yes, the provisions of the GST apply to Section 8 companies.

Other Compliances

  • Other than the annual checklist of compliance requirements that we have mentioned, Section 8 businesses may need to carry out other compliance duties according to the circumstances. Although our service does not cover these tasks, you could have them completed for an extra fee. Examples of such jobs are:
  • Director's permission for Form DIR2 to be in the office for 30 days following the date of appointment
  • Returns in form (Form MR-1) in the 60-day period after the date of appointment of a manager, director manager, or crucial managerial post
  • If your business receives donations or funds from donors, then these earnings are tax-exempt. To be eligible for tax exemptions, the business has to adhere to the rules and regulations in Section 11 and register in Sections 80G and 12A.t is not included in an annual compliance program but is a more comprehensive service.

Annual Compliance Tasks

These are regular compliance requirements to be performed under Section 8 of the company Registration. These are all included in the compliance kit.

Maintaining Registers

  • Appointment of the Auditor: Under Section 139 of the Companies Act 2013, it is compulsory for businesses to choose an auditor. We will choose an auditor on behalf of you.
  • Maintaining Registers: The company will keep a statutory record consisting of the loans it has obtained and charges incurred by its members, as listed in the taxation section of Section 8 of the Company Act, 2013.
  • Convening meetings: The annual general body meeting as well as other statutory ones must be held.
  • Director's Report: Directors of the company must file their annual report, which includes financial information and corporate social responsibility, in a manner that is appropriate. Directors of the board are accountable for the report, and Dobizindia Business Solution Ltd. can assist them in the report.
  • financial statement of the company: The balance sheet Any additional financial statements that the company needs to prepare for the previous fiscal year, including a profit and loss statement and a cash flow statement,
  • Tax returns: at the conclusion of each year's assessment before the 30th day of September, tax returns need to be submitted.
  • Reporting on Financial Statements: A financial report must be filed in the correct format (E-Form AOC-4) within 30 days of the last meeting of the general body.
  • Reports for Filing: Businesses must complete Form MGT-7 with the Secretary of Companies, the Registrar of Companies (ROC), to make returns by the 60th day from the general meeting of the year.

Penalties for Non-Compliance

  • For Section 8 companies that do not adhere to the rules, the Ministry of Corporate Affairs has imposed penalties:
  • In the event that the Central Government determines that the firm is not operating in an honest manner or in violation of its stated purposes, the government may revoke the license it was given.
  • The fines imposed on firms should not be lower than Rs 10 lakh and cannot exceed Rs 1 crore.
  • The directors and all officers of the company that is in default are susceptible to monetary penalties and jail sentences for a period of as long as 25 lakh rupees.
  • Infractions can result in fines that range from Rs25,000 to Rs5,00,000.00 and/or the possibility of imprisonment. This could also result in the directors of the company being blacklisted for a certain period of time.

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