A Section 8 Company is a type of Non-Profit Organization (NPO) registered under the Companies Act, 2013 in India. The primary objective of a Section 8 Company is to promote commerce, art, science, education, research, sports, charity, social welfare, environmental protection, or other similar objectives. Unlike other companies, Section 8 Companies do not distribute profits among their members and must utilize the income for promoting their objectives.
To ensure smooth operations and legal compliance, a Section 8 Company must adhere to specific annual, monthly/quarterly, and event-based compliances as mandated by the Ministry of Corporate Affairs (MCA) and Income Tax Department.
The compliance requirements for a Section 8 Company are categorized into three major types:
a. Annual Compliance – Yearly filings and disclosures irrespective of business activity.
b. Monthly/Quarterly Compliance – Periodic filings required if the company has GST, TDS, PF, or ESI registrations.
c. Event-Based Compliance – Compliance requirements triggered by specific corporate actions or changes in company structure.
| Form Name | Purpose | Details | Due Date |
|---|---|---|---|
| AOC-4 | Financial Statement Filing | Includes Balance Sheet, Profit & Loss Account, and other financial disclosures | Within 30 days of the Annual General Meeting (AGM) |
| AOC-4 XBRL | Financial Statement in XBRL Format | Mandatory for companies with a turnover exceeding INR 100 Crores or a paid-up capital of INR 5 Crore or more | Within 30 days of the AGM |
| MGT-7 | Annual Return Filing | Covers board meetings, shareholding pattern, and governance details | Within 60 days of the AGM |
| Form Name | Purpose | Details | Due Date |
|---|---|---|---|
| ITR-5 | Income Tax Return Filing | Applicable for Section 8 Companies registered under Section 12A for tax exemption | 31st July if no tax audit is required |
| ITR-5 | Income Tax Return Filing | If Tax Audit under Section 44AB is applicable | 30th September |
| Form Name | Purpose | Details | Due Date |
|---|---|---|---|
| GSTR-3B | GST Monthly Summary | Summary of GST on sales and purchases | 20th of every month |
| GSTR-1 | GST Monthly Filing | Invoice-wise details of sales | 10th of every month |
| GSTR-1 (Quarterly) | GST Quarterly Return | If opted for quarterly return | Before 30 days from the end of the quarter |
| Form Name | Purpose | Details | Due Date |
|---|---|---|---|
| 24Q / 26Q / 27Q | TDS Quarterly Returns | 24Q - TDS on Salaries, 26Q - TDS on Non-Salaried Payments, 27Q - TDS on Foreign Payments | Before 30 days from the end of each quarter |
| Form Name | Purpose | Details | Due Date |
|---|---|---|---|
| PF & ESI Returns | Monthly Returns | Details of employer and employee contributions | Before 15th of every month |
| Form Name | Purpose | Details | Due Date |
|---|---|---|---|
| INC-12 | Grant of License | Required for obtaining a license under Section 8 | As per requirement |
| INC-18 | Application for Conversion | Required for conversion of a Section 8 Company into another type | As per requirement |
| INC-20 | Revocation/Surrender of License | Required for surrendering the Section 8 license | As per requirement |
| DIR-3 KYC | KYC of Directors | Mandatory for all active directors | On or before 30th September every year |
| MSME Form | Outstanding Payments to MSMEs | Half-yearly reporting of dues to MSME suppliers | As per requirement |
• Avoid Penalties: Non-compliance leads to penalties, legal issues, and potential dissolution.
• Maintain Credibility: Compliance enhances the organization’s trustworthiness with donors, government agencies, and stakeholders.
• Tax Benefits: Proper compliance ensures continued eligibility for tax exemptions under Section 12A & 80G.
• Operational Efficiency: Timely filing prevents unnecessary financial burdens and ensures smooth operations.
Example: An NGO running a skill development center for underprivileged youth failed to file its MGT-7 and AOC-4 for two consecutive years. As a result:
• The company was marked as a defaulting company by MCA.
• A penalty of INR 1 lakh was imposed for non-compliance.
• It became ineligible for government grants and tax exemptions.
• The company had to pay additional legal fees to restore compliance.
This case highlights the necessity of timely compliance to avoid financial losses and operational disruptions.
Compliance is a crucial aspect of managing a Section 8 Company in India. By adhering to the required annual, monthly, and event-based filings, companies can operate efficiently, maintain tax benefits, and build credibility. It is advisable to consult with compliance experts or professionals to ensure all statutory requirements are met in a timely manner.
For end-to-end compliance solutions, ReturnFilings.com provides expert services to help you focus on your mission while we take care of your legal and regulatory needs.
By adhering to the above compliance requirements, Section 8 Company can operate smoothly, avoid penalties, and maintain good legal standing. For professional assistance, reach out to us on email: info@returnfilings.com or on whatsapp: https://wa.me/919910123091 to ensure all statutory obligations are met on time.
