Section 8 Company | ROC Compliance Checklist for this Type of Company

ROC Compliance for Section 8 Company

What is Annual Compliances of Section 8 Company?

A Section 8 Company can be defined as per the Companies Act, 2013 as a charitable company or trust that encourages and side by side nourishes the acts related to the field of arts, science, commerce, education, sports, social welfare, religion, charity, research human rights and environmental protection or any other objective having a charitable nature. It is registered under the Act as a Non-Government Organization or NGO Registration. It can be rightly said as a non-profitable organization because the profits made by this type of company are not shared among its partners or members but are invested back in the organizations function to achieve its objectives and aims. To incorporate a Section 8 Company, a proper license is required from the government. Strict and stringent rules are set up to promote the company’s motives so that it might not end up having profits for the personnel in the company through other activities.

Section 8 Company

Annual Compliance Checklist for Section 8 Company:

Annual ROC Compliances have to be fulfilled by the Section 8 Company to be line with the law and order. The checklist of annual compliances for this type of company is quite similar to some extent to the ROC Compliance Checklist for Small Companies in India or Limited Companies. The checklist includes-

  1. Form ADT-1: This form is filed for the Appointment of Auditor. A Section 8 Company is required to appoint an auditor for taking care of its annual financial fillings. Under Section 139 of the Companies Act, every company has to intimate about the appointment of the auditor to the Ministry of Corporate Affairs (MCA) in the said form.
  2. Form MGT-7: It is filed for the Annual Returns with the Registrar of Companies. It must be filed by the company within 60 days of the conclusion of the Annual General Meeting of the company.
  3. Form AOC-4: Every Section 8 Company has to file Form AOC-4 for filing its Financial Statements. It must be filed within 30 days from the date of conclusion of the AGM.
  4. Preparing the Financial Statements: Every company must prepare its financial statements for the previous fiscal year without any delay. The financial statements consist of the following records-
  • Cash Flow Statement
  • Balance Sheets
  • Profit and Loss Accounts of the company
  • Transaction Register
  1. Holding Statutory Meetings: Similar to other companies a Section 8 Company is also required to conduct and hold Statutory Meetings at regular intervals in each financial year. The statutory meetings include-
  • Shareholders meeting
  • Meeting of the members
  • Meeting of the Board of Directors and etc.
  1. Maintaining the Books of Accounts: The Company has to mandatorily maintain the books of accounts while keeping in the records and data related to the annual return filing and other transactions.
  2. Filing the Income Tax Returns: The Company is required to file the Income Tax Return at regular intervals to provide the overall view of its net income. These are to be filed on or before September 30th of each and every fiscal year.
  3. Maintaining the Statutory Registers: Every Section 8 Company has to focus on maintenance of statutory registers for recording the statutory details of the members, charges, minutes of the meetings, loans and investments in a particular financial year.
  4. Director’s report: It is an important document that consists of company’s information and its compliance with the laid set and rules related to accounting, financial and social corporate responsibility. It must be prepared by the Board of Directors.

Documentation for Annual Compliances of Section 8 Company:

The following documents are to submitted by a Section 8 Company for completing the ROC Compliance-

  1. Digital Signature Certificate (DSC)
  2. Articles of Association (AOA)
  3. Memorandum of Association (MOA)
  4. Certificate of Incorporation or Registration Certificate

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.