Compliance Calendar for Section 8 Company

As a business proprietor, the juggling act of numerous responsibilities is a constant challenge. One of the paramount responsibilities is ensuring strict adherence to state and municipal laws that govern your business operations. Specifically, in accordance with the Companies Act of 2013, Section 8 companies are mandated to comply with the regulatory standards set forth by the Ministry of Corporate Affairs (MCA). In this article, we are going to discuss the Compliance Calendar for Section 8 Company.

The foundational objective behind the establishment of Section 8 companies is to champion and facilitate endeavors in diverse fields such as science, art, athletics, charity, and business. Typically classified as Non-Governmental Organizations (NGOs), Section 8 companies benefit from the legal status of a ‘Limited Company,’ although the inclusion of ‘Limited’ in the company name is not obligatory. In essence, Section 8 companies are dedicated to advancing the welfare of disadvantaged sectors and communities in India. Notably, these entities are exempted from distributing income or dividends to their partners or members.

To navigate the intricacies of compliance, particularly for Section 8 companies, it is essential to follow a well-structured compliance calendar. This calendar serves as a comprehensive guide, outlining key milestones and deadlines to ensure the seamless adherence to regulatory requirements. By maintaining compliance, Section 8 companies can continue their mission of contributing positively to the specified sectors and communities without encountering legal hurdles or jeopardizing their nonprofit status.

Advantages of Adhering to the Compliance Calendar for Section 8 Companies

Maintaining a meticulous compliance calendar is not merely a regulatory obligation; it brings about several advantages, particularly for Section 8 companies. Here’s a glimpse of the benefits:

• Enhanced Trustworthiness and Credibility:

Strict adherence to compliance schedules enhances the trustworthiness and credibility of Section 8 companies, fostering positive perceptions among potential investors and stakeholders.

• Penalty Avoidance:

By adhering to compliance timelines, companies steer clear of unnecessary penalties, safeguarding their financial well-being and preserving resources for their charitable objectives.

• Legal Hassle Prevention:

Rigorous compliance practices ensure that Section 8 companies operate without encountering legal issues in the future, facilitating smooth and uninterrupted business operations.

In essence, the key features and advantages underscore the importance of meticulous governance for Section 8 companies. By embracing these features and aligning with compliance calendars, these entities can not only achieve their philanthropic objectives but also establish a robust foundation for sustained success and societal impact.

Mandatory Section 8 Company Compliances – Compliance Calendar Guide

For Section 8 companies, adherence to a structured compliance calendar is imperative to ensure seamless operations and uphold regulatory standards. Below is a comprehensive list of annual compliances that Section 8 companies must diligently follow:

• Appointment of Auditor:

A Section 8 company is obligated to appoint an auditor annually. The appointed auditor is responsible for the thorough review and maintenance of the company’s financial records and statements.

• Conducting Board Meetings:

The Board of Directors of the company is required to convene at least twice a year. There should be a maximum gap of three months or ninety days between these two meetings to facilitate effective governance and decision-making.

• Income Tax Return Filing:

Section 8 companies must submit their Income Tax Returns by September 30 of the preceding financial year. It’s noteworthy that businesses registered under Sections 12A and 80G may be eligible for tax exemptions.

• Annual General Meeting (AGM):

AGMs are to be conducted on or before September 30 annually. The presence of all directors, shareholders, members, and auditors is essential. The AGM report must be filed using Form MGT-15 within 30 days from the date of the meeting.

• Financial Return Filing with ROC:

Section 8 companies must file their financial reports and statements using E-form AOC-4 within 30 days from the conclusion of the Annual General Meeting. This filing ensures transparency in financial disclosures.

• Annual Return Filing with ROC:

The annual financial return of the company must be filed with Form MGT-7 within 60 days from the date of the Annual General Meeting. This submission provides a comprehensive overview of the company’s activities and financial position.

By adhering to this compliance calendar, Section 8 companies can navigate the regulatory landscape seamlessly, fostering trust among stakeholders and contributing to the overall success and sustainability of their charitable endeavors.

Annual Compliance Calendar for Section 8 Companies

For Section 8 companies, the adherence to annual compliances is crucial to maintain regulatory compliance. The comprehensive list below outlines the key compliances under the Companies Act, 2013, forming a detailed compliance calendar for Section 8 companies:

• INC-20A: Declaration of Commencement of Business to ROC

1. Purpose: Declare commencement of business to the Registrar of Companies (ROC)
2. Due Date: Within 180 days from the incorporation date.
3. Triggering Provision: Section 10A

• MGT-6: Intimation of Declaration under Section 89

1. Purpose: Notify the declaration received under Section 89
2. Due Date: Within 30 days from the receipt of the declaration by the company
3. Triggering Provision: Section 89(6)

• BEN-2: Intimation of Declaration under Section 90

1. Purpose: Notify the declaration received under Section 90
2. Due Date: Within 30 days from the receipt of the declaration by the company
3.       Triggering Provision: Section 90(4)

• DIR-3 KYC: Directors’ KYC

1. Due Date: 30th September
2. Triggering Provision: Rule 12A of Companies (Appointment & Qualification of Directors) Rules 2014

• ADT-1: Intimation of Appointment of Statutory Auditor

1. Purpose: Notify the appointment of a Statutory Auditor
2. Due Date: Within 15 days from the appointment
3. Triggering Provision: Section 139

• ADT-1: Notice to Registrar for 1st Statutory Auditor Appointment

1. Due Date: Appoint within 30 days from the incorporation date
2. Triggering Provision: Section 139(6)

• ADT-3: Intimation of Resignation of Statutory Auditor

1. Purpose: Notify resignation of Statutory Auditor
2. Due Date: Within 30 days from the Resignation date
3. Triggering Provision: Section 140

• MGT-14: Filing of Resolution and Agreements under Section 117(3)

1. Due Date: Within 30 days of passing the resolution
2. Triggering Provision: Section 117

• INC-22: Intimation of Change in Registered Office

1. Due Date: Within 30 days of such change
2. Triggering Provision: Section 12

• E-Form MSME-1: Return for Outstanding Payments to Micro or Small Businesses

1. Due Date: Within one month from the conclusion of each half-year
2. Triggering Provision: Section 405

• IEPF-2: Declaration of Unclaimed and Unpaid Amounts under Section 125

 Due Date: Within 60 days after the holding of the AGM

     Triggering Provision: Rule 5(8) of IEPF Authority (Accounting, Audit, Transfer & Refund) Rules, 2016

1. DPT-3: Return of Deposit or Particulars about a Transaction

      Due Date: On or before 30th June every year

      Triggering Provision: Rule 16 of Companies (Acceptance of Deposits) Rules, 2014

1. Form AOC-4/AOC-4 CFS/AOC-4 XBRL: Filing of Annual Accounts

     Due Date: Within 30 days after the AGM’s conclusion

    Triggering Provision: Section 137

1. E-Form MGT-7: Filing of Annual Return

      Due Date: Within 60 days after the AGM’s conclusion

      Triggering Provision: Section 92

1. MBP-1: Disclosure of Interest by Director

      Due Date: At the first Board meeting of the fiscal year

      Triggering Provision: Section 184

Adhering to this comprehensive compliance calendar ensures Section 8 companies remain in regulatory compliance, fostering transparency and accountability in their operations.

Compliance under the Goods and Services Tax (GST) Act, 2017

Under the Goods and Services Tax (GST) Act, 2017, businesses are required to adhere to specific compliance timelines for various forms. The key compliance requirements are detailed below:

1. GST Registration

Purpose: Registering under the GST framework

Due Date: Within 30 days of crossing the threshold limit

• GSTR-1: Reporting of Outward Supply

Purpose: Reporting outward supply details (for turnover exceeding Rs. 5 Crore or for those not under the QRMP scheme)

Due Date: By the 11th of the subsequent month

• GSTR-1 IFF: Reporting of Invoices

Purpose: Reporting of invoices (for those under the QRMP scheme)

Due Date: By the 13th of the subsequent month

• GSTR-3B: Payment of Tax and Filing of Return

Purpose: Payment of tax and filing a return summarizing outward supply, tax credits, etc. (for those not under the QRMP scheme)

Due Date: On a quarterly basis

• GSTR-9: Filing of GST Annual Return

Purpose: Annual filing of GST return (for turnover exceeding 2 crores)

Due Date: By 31st December of the subsequent year

• GSTR-9C: Filing of GST Reconciliation Statement

Purpose: Filing a reconciliation statement (for turnover exceeding Rs. 5 crores)

Due Date: By 31st December of the subsequent year

These compliance requirements are essential for businesses to fulfill their tax obligations under the GST Act. Timely adherence to these deadlines ensures regulatory compliance and facilitates smooth operations within the GST framework.

Compliance under Labour Laws

Compliance with labor laws is imperative for businesses to ensure the well-being and financial security of their workforce. Below is a summary of key compliance requirements:

1. ECR: Payment of Provident Fund (PF) Contribution:

Purpose: Submission of Provident Fund contributions

Due Date: 15th of every succeeding month

• ESI Payment:

Purpose: Remittance of Employees’ State Insurance (ESI)

Due Date: 15th of every following month

• ESI Return:

Purpose: Submission of Employees’ State Insurance (ESI) return

Due Date: 15th of every subsequent month

• Labour Welfare Fund:

Purpose: Annual payment in accordance with the due date specified by respective states

Due Date: Paid on an annual basis as per state-specific timelines

• Filing of PF Return:

Purpose: Submission of Provident Fund (PF) return

Due Date: 25th April following the conclusion of the financial year

Adherence to these labor law compliance requirements is essential for fostering a harmonious employer-employee relationship and promoting a work environment that prioritizes the welfare of the workforce. Timely submission of these forms ensures businesses meet their legal obligations and contribute to the overall well-being of their employees.

Conclusion

Section 8 companies are obligated to strictly follow the outlined compliance calendar for Section 8 companies, as detailed above. Any deviation from these compliance standards may lead to significant fines and additional penalties over time. Non-compliance poses not only the risk of financial repercussions but also jeopardizes the company’s reputation, potentially impeding its business operations. It is paramount for Section 8 companies to prioritize adherence to these compliance requirements to ensure not only legal compliance but also the sustained trust and credibility necessary for effective and uninterrupted business activities.