Annual Compliance for Section 8 Company

Section 8 is a non-profit organization registered under the Companies Act 2013.  These organizations must use their profits only to promote their objects and not distribute them among members as dividends.  Further, every section company must fulfill certain monthly, quarterly, and yearly compliances.

To ensure that your non-profit Company has an excellent legal standing in the eyes of the governmental authorities.

Regarding Section 8 Companies, it is assumed that you are looking forward to assisting a lot of individuals in a non-profit way. However, still, you would need to earn something to ensure that there is life in your organization. However, you won't be suitable for anyone if you are not following through with the compliances.

As a result, you might be looking at lawsuits and other matters, and in the end, your Company might even be closed. Therefore, Annual compliance with Section 8 is essential to running the Company.

Benefits of Section 8 Company Annual Filing

We have enlisted some of the benefits of regularly filing the annual compliance for the Section 8 company:

• Assists in preventing the financial penalties
• Helps in building customer trust and brand loyalty
• The visibility of the operations of the company increases
• The credibility of the Company improves
• No government intervention is ensured

Eligibility Criteria for Annual Compliance for Section 8 Company

If you're a section 8 company, you should clarify the following before you start filing the annual compliance for it:

The objective of your Company is to promote social welfare causes.

At any moment during your operations, you haven't used the profits for anything other than promoting those social welfare causes.

Details of the to-be-filed Annual Compliance

All registered Section 8 Companies must file their Annual Returns with the Registrar of Companies in the e-form MGT 7. The filing must be conducted within 60 days from the date of the AGM, i.e., the Annual General Meeting. A Section 8 Company can file its Annual Returns with the digital signature of the appointed directors of the Company or the registered DSCs of the Chartered Accountant auditing the Section 8 Company.

The filed returns must contain the information from the previous financial year, such as:

About Section 8 Company:

• Registered Office Address
• Principal Business Activities of the incorporation
• Particulars of its Section 8 Company's Holdings
• Section 8 Company's Subsidiary
• Associate Companies

About Shares:

• Shares details
• Debentures
• Securities
• Shareholding pattern of the Section 8 Company
• Section 8 Company's Indebtedness details

About Membership:

• Member details
• Debenture holders and the requisite changes since the previous financial year's closure

About Section 8 Company Personnel:

• Promoters Details
• Directors information
• Key Managerial Personnel, along with the changes since the previous financial year's closure

About General Meetings:

• Meeting Members details
• Meeting Members classes
• Board of Directors
• Various Committees
• Attendance Details of the Meeting

For Section 8 Company:

• Remuneration of Directors
• Remuneration of Key Managerial Personnel

About Penalties:

• Penalty/Imposed Punishment details
• Sentences served by the Section 8 Company's Directors/Officers
• Offense Compounding details
• Appeals against Penalty/Punishment

About Compliance:

• Certification of Compliances
• Disclosures details

About FDIs:

Share Details held by Foreign Institutional Investors, such as:

• Names
• Addresses
• Countries of Company Incorporation
• Registration
• Percentage of FDI's shareholding

Section 8 Company's Undertaking:

• Undertaking Details signed by Directors or the Company Secretary
• If the Section 8 Company appoints no Company Secretary, then a practicing Company Secretary

Documents Required for filing Annual Compliance for Section 8 Company

Every Section 8 Company must attach the following documents with the annual compliance filing forms to the MCA:

• The Identification proofs of the directors
• The Pan cards of the directors
• Memorandum of association
• Articles of Association
• An estimate for future annual income and expenses for the next three years

Process for filing Annual Compliance for Section 8 Company

The process of filing the Annual Compliance for Section 8 Company is as follows:

1. Collection of information required for the purpose of filing the annual compliance
2. Go to the official website of MCA and start filling out the required compliance forms on schedules specified in the ministry guidelines.
3. Submit the application and wait for the notification that your compliance has been processed.

Our Assistance in filing the Annual Compliance for Section 8 Company

We at Registrationwala provide end-to-end solutions for filing annual compliance for Section 8 Companies. Our services include:

• Collection of information and starting the process
• Creating the first compliance draft
• Reviewing the draft and making changes if necessary
• Filing the compliance
• Registrationwala.com is a leading legal consultancy firm providing comprehensive services relating to Annual Compliance for Section 8 Companies.

Contact us now if you've yet to file your Section 8 Annual Compliance.