Quick Contact
Need Help?
Please Feel Free To Contact Us. We Will Get Back To You With 1-2 Business Days.
Email: support@taxguider.in
Tel.: (+91) 8695008695
Download
Section 8 Company Compliance
Section 8 company, under the Companies Act 2013, is a non-profit entity committed to promoting various areas like trade, art, science, sports, education, social welfare, and more. These businesses run with the main goal of helping society rather than creating income for their users.
Compliance for Section 8 Companies
Annual compliance for Section 8 companies includes several necessary standards that must be met to keep legal standing and avoid fines. These include:
- Appointment of Auditor: As per with Section 139 of the Companies Act, 2013, a Section 8 business ought to choose an auditor within 30 days from the date of creation.
- Maintenance of Company Register: Section 8 organizations are expected to hold a regulatory register that consists of details related to money due, data of members, and other vital details.
- Convene Statutory Meeting: Section 8 organizations have to keep a statutory meeting within 365 days from the date of creation and thereafter at times of not greater than 15 months.
- Preparation of Financial Statements: Section 8 companies need to prepare monetary statements in accordance with the Companies Act 2013.
- Income Tax reports: Section 8 companies ought to file income tax reports in Form ITR-6 on 30 September of each monetary year.
- Financial Statement Returns Filing and Annual Return Filing: Section 8 organizations have to record Form AOC-4 and Form MGT-7 in 30 days and 60 days of the AGM, respectively.
Non-compliance with Section 8 Companies
Non-compliance with Section 8 business rules can lead to fines, civil action, and loss of legal standing. The effects of non-compliance include:
- Penalties: The Central Government may apply fines on Section 8 companies for non-compliance, which can run from Rs. 10 lakhs to Rs. 1 crore.
- Legal Action: Directors and officers of Section 8 companies who are in failure may face jail and monetary fines up to Rs. 25 lakhs.
- Loss of Legal Status: If the Central Government decides that a Section 8 company is acting dishonestly or against its stated goals, it may cancel the license.
- Liability for Fraudulent Activities: If it is found that the company’s business is carried on illegally, then every person in default will be responsible for their actions under section 447 of the Companies Act, 2013.
EXPERT GUIDANCE
Our team of legal and accounting professionals helps you through every step of the registration and accounting process.
TRANSPARENT PRICING
Tax Guider Offers clear and affordable pricing with no hidden fees. Every fee is made clear at the beginning.