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Section 8 Company must-comply checklist

Appointment of auditor

- Annual appointment of an auditor is required for Section 8 companies to ensure the accuracy and consistency of their financial records and statements.

Organise board meetings

- Board meetings should be conducted twice a year, with no more than a three-month interval.

Filing of Income tax return

- Section 8 companies must file their Income Tax Returns by September 30th of the preceding fiscal year. Filing for Income Tax Returns is mandatory for the company to provide a comprehensive breakdown of its income. Tax exemption benefits are available to companies registered under Section 12A and 80G.

Filing of Financial return

- The submission of financial reports and statements can be done by using the E-form AOC-4 within 30 days after the annual general meeting.

Holding of annual general meeting
It is mandatory to conduct an annual general meeting yearly and it must be held before the 30th of September. All directors, shareholders, members, and auditors are required to attend. 
A formal notice must be sent to members at least 21 days prior to the meeting. The Report of Annual General Meeting must be submitted through Form MGT-15 within 30 days of the meeting.

Filing of annual return using Form MGT-7 
•    Section 8 companies are required to submit Form MGT-7 for their annual return.
•    The annual return must be filed within 60 days from the date of the Annual General Meeting.
•    In cases where no AGM is held, the annual return must be filed within 60 days from the time period or days on which it should have been held.
•    The deadline for the annual return submission is September 30th.

Benefits of Complying with Section 8 Company Regulations
•    Enhances the company's credibility and trustworthiness
•    Safeguards the company against legal issues
•    Assists the company in avoiding penalties and punishments
•    Aims to build trust among customers

Section 8 Company Compliances: Deadlines for Submission
The due dates for filing Section 8 company compliances vary depending on the specific requirements. Here are some common compliances and their respective due dates:
Ignoring compliance can lead to penalties. Therefore, Section 8 companies must follow the prescribed deadlines and avoid penalties. These deadlines include:
- AGM or Annual General Meeting: due on September 30th of every year.
- AOC-4: due within 30 days of the Annual General Meeting.
- MGT-7: due within 60 days of the Annual General Meeting.
- Income Tax Return: due on September 30th of every year.

Section 8 Company's Annual Compliance Requirements Based on Events
Event-based compliance refers to the specific obligations that a company must fulfil in relation to specific occurrences or events. Unlike regular compliance requirements, these obligations do not occur on a periodic basis. For Section 8 companies, the following checklist outlines the event-based compliances:
1. Record and disclose transaction details of company shares.
2. Document the allotment of company shares.
3. Provide information regarding the appointment or resignation of directors.
4. Report any changes in auditors' appointment or resignation.
5. Update company records in case of a change in the company's name.
6. Update company records in case of any changes to the company's Memorandum of Association (MOA).
7. Document the appointment of Key Managerial Personnel.
8. Keep records of share application money receipts.
9. Report any changes in the company's structure.
These event-based compliances are essential for ensuring the company's legal and regulatory obligations are met.

INCOME TAX REGULATIONS FOR SECTION 8 COMPANIES
A Section 8 Company is required to pay corporate tax in accordance with the Income Tax Act. However, there are certain measures that can be taken to exempt the Section 8 Company from income tax. To qualify for these exemptions, the Section 8 Company must meet the following requirements:
1. Register under Section 12A of the Income Tax Act by submitting Form 10A to the Principal Commissioner.
2. Adhere to the conditions outlined in Section 11 to be eligible for exemption criteria.
3. Obtain approval from Section 80G by submitting Form 10B.
Penalties for Non-Compliance:
Failure to comply with these requirements may result in penalties imposed by the Ministry of Corporate Affairs. The Central Government has the authority to deny permission to the company if it is found to be operating in violation of its objectives. The company may be fined between ten lakh rupees to one crore rupees. Additionally, the directors and officials responsible for non-compliance may face detention and fines of up to 25 lakh rupees, or both. If it is discovered that the company's affairs were conducted fraudulently, action may be taken against those involved under section 447.