Section-8 companies – what exactly are they?
It is a non-profit organization that promotes commerce, the arts, science, sports, education, research, social welfare, and environmental protection. It is allowed for them to conduct businesses and earn profits, as long as the profits are used for the predetermined charitable objectives.
What is the necessity of filing an annual ROC filing for a Section 8 company?
An annual return is required for every Indian company. A completed E-form along with the necessary documents must be submitted to MCA. Regardless of whether the company is active or not, all companies registered under the Companies Act, 2013, including private limited companies, one-person companies, limited companies, and section 8 companies, are required to file an MCA annual return and an income tax return every year. An Annual General Meeting must be held by section-8 corporations each year and financial statements and an annual return must be filed with the Ministry of Corporate Affairs.
Know more about: Section 8 Company Incorporation
How Does a Section 8 Company Meet ROC Filing Requirements When It Doesn’t?
Company Registrars (ROCs) and Income Tax authorities require compliance. Organizations that fail to comply with compliance requirements may be penalized and their directors may be disqualified.
Section 8 companies are required to file their ROC annually
* Section 139 of the Corporations Act 2013 specifies that companies must appoint an auditor. The statutory auditor will audit the company’s annual report and books of accounts every five years.
* Company members, loans acquired, charges created, directors, etc., must be listed in a statutory register required by Section 8 Companies Act 2013.
* After completing the fiscal year, the general body must hold its annual meeting and other board meetings.
* As soon as the annual general meeting has taken place, the annual return will be filed with the Registrar of Companies (ROC) in Form MGT-7.
* All financial statements and other annexures shall be included in the board’s report in the prescribed format. Form AOC-4 must be used for the board report.
* Companies must provide balance sheets, profit and loss statements, cash flow statements, and other financial statements. The report must be audited by a statutory auditor before it is submitted to the ROC.
* Every year, the ITR for the registration of Section 8 companies must be filed by September 30th.
* The financial statement must be filed electronically (E-FORM AOC-4) within 30 days of the annual general meeting.