What is Section 8 Company Compliance?

Section 8 Company Compliance refers to the statutory requirements that non-profit companies (incorporated under Section 8 of the Companies Act, 2013) must fulfill every financial year. These companies are formed to promote charity, education, art, culture, environment, and other social causes, and though they enjoy several tax exemptions, they must strictly follow compliance procedures to maintain their legal and tax-exempt status.

The compliance includes annual filings with the MCA, maintenance of statutory registers, conduct of board and general meetings, and income tax returns, among others. Proper compliance builds transparency and accountability, especially when the company receives public donations, CSR funds, or grants.

✅ Benefits of Section 8 Company Compliance
🎯 Written from the client’s perspective.

1️⃣ Retain 80G and 12A tax exemptions and credibility for donors
2️⃣ Stay compliant with the Companies Act, 2013 and avoid legal troubles
3️⃣ Boost reputation with stakeholders, donors, and funding bodies
4️⃣ Meet eligibility criteria for CSR funding and government schemes
5️⃣ Avoid penalties, fines, and possible license revocation
6️⃣ Maintain transparency in income and expenditure reporting
7️⃣ Ensure smooth audit processes and financial scrutiny

📑 Documents Required for Section 8 Company Compliance
📂 Key documents with brief explanations.

1️⃣ 📄 Certificate of Incorporation – Legal proof of company formation
2️⃣ 📘 MOA & AOA – Governing rules and object clause of the NGO
3️⃣ 🧾 PAN of the Company – For tax and filing identification
4️⃣ 📊 Financial Statements – Audited balance sheet and income statement
5️⃣ 📅 Meeting Minutes – Records of Board and Annual General Meetings
6️⃣ 🖋️ DSC & DIN – Digital Signature Certificate and Director Identification Number

👤 Eligibility for Section 8 Company Compliance
🧾 Who is required to comply?

All companies registered as a Section 8 Company under the Companies Act, 2013, regardless of size, revenue, or donations received, must follow annual compliance. This includes:

• Newly registered NGOs with Section 8 status

• Section 8 Companies involved in education, relief, health, arts, or social causes

• Companies with 80G/12A certification or CSR approval

• Organizations seeking to remain eligible for funding or tax benefits

🔄 Process of Section 8 Company Compliance
🔁 Step-by-step explanation of how the service is executed.

1️⃣ Assessment & Data Collection – Review previous compliance records and gather financials
2️⃣ Audit of Financial Statements – Get accounts audited by a Chartered Accountant
3️⃣ Conduct Board & AGM Meetings – Document resolutions and statutory meetings
4️⃣ MCA Filings – File AOC-4 (financials) and MGT-7 (annual return)
5️⃣ Income Tax Return Filing – File ITR-7 for non-profit entities
6️⃣ Compliance Certificate & Reports – Final documentation and legal confirmation

⏱️ Timeline for Section 8 Company Compliance
⏳ Time estimates and key deadlines.

• MGT-7 (Annual Return): Due within 60 days of the AGM

• AOC-4 (Financial Statements): Due within 30 days of the AGM

• AGM: Must be held within 6 months of the end of the financial year

• ITR-7: Due by 31st October (subject to audit)

Most compliance procedures can be completed in 2–4 weeks, assuming timely document availability and audit completion.

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

1️⃣ Is compliance mandatory for small or inactive Section 8 Companies?
Yes, annual compliance is mandatory regardless of turnover or activity level.

2️⃣ What happens if we miss the compliance deadlines?
Heavy penalties apply and may lead to cancellation of Section 8 license.

3️⃣ Is audit mandatory for a Section 8 Company?
Yes, audit is mandatory irrespective of turnover.

4️⃣ Which forms are filed annually?
Form MGT-7 (Annual Return) and Form AOC-4 (Financials).

5️⃣ Can Section 8 Companies receive foreign donations?
Yes, with FCRA registration and continued compliance.

6️⃣ How many board meetings are required?
Minimum of two Board Meetings every year, and one AGM.

7️⃣ Can we apply for 80G and 12A after incorporation?
Yes, but only compliant companies are eligible for approval and renewal.

8️⃣ Can we change the objectives of a Section 8 Company?
Yes, but it requires ROC approval and compliance filing.

9️⃣ Do you provide compliance support throughout the year?
Yes, we offer ongoing support for governance, tax filing, and audits.

🔟 Is filing ITR-7 compulsory?
Yes, it’s the prescribed income tax return form for Section 8 Companies.