December 01, 2023 at 07:04 AM
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.
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:
Strict adherence to compliance schedules enhances the trustworthiness and credibility of Section 8 companies, fostering positive perceptions among potential investors and stakeholders.
By adhering to compliance timelines, companies steer clear of unnecessary penalties, safeguarding their financial well-being and preserving resources for their charitable objectives.
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.
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:
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.
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.
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.
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.
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.
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.
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:
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
Due Date: On or before 30th June every year
Triggering Provision: Rule 16 of Companies (Acceptance of Deposits) Rules, 2014
Due Date: Within 30 days after the AGM’s conclusion
Triggering Provision: Section 137
Due Date: Within 60 days after the AGM’s conclusion
Triggering Provision: Section 92
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.
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:
Purpose: Registering under the GST framework
Due Date: Within 30 days of crossing the threshold limit
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
Purpose: Reporting of invoices (for those under the QRMP scheme)
Due Date: By the 13th of the subsequent month
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
Purpose: Annual filing of GST return (for turnover exceeding 2 crores)
Due Date: By 31st December of the subsequent year
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 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:
Purpose: Submission of Provident Fund contributions
Due Date: 15th of every succeeding month
Purpose: Remittance of Employees’ State Insurance (ESI)
Due Date: 15th of every following month
Purpose: Submission of Employees’ State Insurance (ESI) return
Due Date: 15th of every subsequent month
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
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.
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.