What is Section 8 Company Annual Compliance?

A Section 8 Company is a non-profit organization (NPO) registered under the Companies Act, 2013, with the objective to promote charitable, educational, religious, or social welfare activities. Just like private limited or public companies, a Section 8 Company must also fulfill specific annual compliance requirements to maintain its legal status and avoid penalties.

Annual compliance involves filing financial statements, directors’ reports, income tax returns, and various ROC (Registrar of Companies) forms, even if the company did not conduct any business during the year. It also ensures that the organization remains eligible for tax exemptions under Sections 12A and 80G and eligible for CSR funding.

Non-compliance can lead to heavy fines, cancellation of licenses, or even company strike-off. A timely and professionally handled compliance process safeguards your operations and credibility.

✅ Benefits of Section 8 Company Annual Compliance

🎯 Provide 7 strong benefit points, written from the client's perspective.

1️⃣ Legal Protection & Continuity – Avoid penalties and ensure smooth legal functioning
2️⃣ Retain Tax Exemptions – Stay eligible for 12A, 80G, and other tax benefits
3️⃣ Build Donor & CSR Confidence – Display responsible financial governance
4️⃣ Stay Government Grant-Ready – Required for availing or continuing government support
5️⃣ Promote Transparency – Clear annual reporting improves public and partner trust
6️⃣ Prevent Strike-Off or Disqualification – Non-compliance can lead to deregistration
7️⃣ Enhance Credibility – Compliance reflects professionalism and good governance

📑 Documents Required for Section 8 Company Annual Compliance

📂 List all required documents with relevant emojis and brief explanations.

1️⃣ 🧾 Certificate of Incorporation – Proof of registration under Section 8
2️⃣ 📚 Audited Financial Statements – Balance Sheet, P&L Account, Cash Flow Statement
3️⃣ 📋 Director Identification Numbers (DIN) – For all directors involved
4️⃣ 📄 Board Meeting Minutes – Records of board discussions and decisions
5️⃣ 🗓️ Annual General Meeting (AGM) Records – Proof of AGM conducted
6️⃣ 🧑‍💼 Director’s Report & Auditor’s Report – Mandatory disclosures by management and auditors

👤 Eligibility for Section 8 Company Annual Compliance

🧾 All entities registered as a Section 8 Company under the Companies Act, 2013 must comply with annual reporting requirements, regardless of revenue or activity level.

You are required to fulfill annual compliance if:

• You are registered as a Section 8 Company (non-profit)

• Your company is availing or intends to avail 12A, 80G, or CSR funds

• You wish to maintain legal standing, apply for grants, or renew licenses

• Your company has directors, members, or donors who expect transparent governance

🔄 Process of Section 8 Company Annual Compliance

🔁 Provide a step-by-step explanation of how the service is executed from start to finish.

1️⃣ Initial Consultation – Review company structure, previous compliance status, and compliance calendar
2️⃣ Document Collection – Gather financials, board resolutions, director reports, and AGM records
3️⃣ Financial Audit & Finalization – CA prepares audited statements if not already done
4️⃣ ROC Filing (Form AOC-4 & MGT-7) – Submission of financials and annual returns to MCA
5️⃣ Income Tax Filing – Filing ITR-7 and other required disclosures under Income Tax Act
6️⃣ Advisory & Documentation Support – Provide compliance summary, reminders, and audit readiness kit

⏱️ Timeline for Section 8 Company Annual Compliance

⏳ Section 8 compliance filings are tied to the financial year ending March 31st and must be completed as follows:

• AOC-4 (Financial Statements) – By 30th October

• MGT-7 (Annual Return) – By 29th November

• Income Tax Return (ITR-7) – By 31st October

Delays may occur due to incomplete audits or missing documentation. Early action ensures a smooth process.

❓ Frequently Asked Questions (FAQs) about Section 8 Company Annual Compliance

1️⃣ Is annual compliance mandatory for all Section 8 Companies?
Yes, whether or not you had transactions or income, annual compliance is legally required.

2️⃣ What are the key ROC forms to be filed?
Form AOC-4 for financials and Form MGT-7 for annual returns.

3️⃣ Is audit compulsory for a Section 8 Company?
Yes, all Section 8 Companies must get their books audited annually by a Chartered Accountant.

4️⃣ What happens if we miss the compliance deadline?
Late filing attracts penalties of ₹100 per day per form, and non-compliance may lead to legal notices or strike-off.

5️⃣ Can we file the compliance forms ourselves?
No, these filings must be digitally signed and submitted by a certified Company Secretary or CA.

6️⃣ Is there any relaxation for NGOs with low or no income?
No, even zero-revenue Section 8 Companies are required to comply annually.

7️⃣ Does non-compliance affect our 12A or 80G status?
Yes, repeated non-compliance may lead to revocation of tax exemption certificates.

8️⃣ Is GST filing part of annual compliance?
No, but if your company is GST registered, you must fulfill GST compliance separately.

9️⃣ Can we combine Income Tax and ROC compliance?
They are separate processes, but we handle both under our annual compliance package.

🔟 What services are included in your compliance package?
Our package covers audit support, document review, form filing (AOC-4, MGT-7), ITR filing, and advisory.