Google Customer Rating
The Companies Act, 2013 has made it mandatory for all the Section 8 Company Companies to adhere to Section 8 Compliance with the MCA (Ministry of Corporate Affairs).
The purpose of forming Section 8 Company is to promote, encourage, and nourish activities related to art, science, sports, commerce, charitable activities, etc. Section 8 Company can be categorized as a Non-Governmental Organization. These companies enjoy the liberty of being treated as ‘Limited Company’, though, word ‘Limited’ is not added at the end of their names. Concisely, Section 8 companies work in the direction of promoting needy communities and sectors in India. These Companies are not liable to give income or dividend to its members.
|Gives company a better credibility||Protects the company from any legal trouble||Help the company in circumventing penalties||Work in the direction of forming trust amongst the customers|
|Memorandum of Association||Article of Association||DSC||Certificate of Incorporation|
Event based, as the name recommends, are the compliances should be documented on the event of explicit occasions. In contrast to annual compliances, these are non-periodical in nature.
Checklist For Event-Based Compliances For Section 8 Company:
Section Company is bound to pay corporate tax as mentioned in the Income Tax Act. But by adopting certain measures the Company can exempt its certain income from the income tax. To entertain such exemptions Section 8 Company needs to fulfil the following compliances:
The Ministry of Corporate Affairs has the authority to impose certain penalties in case it encounters any non-compliance with the procedures.
Penalties to be imposed are as follows:
Non-compliance can lead to penalty and for the Section 8 Company the best way to ignore penalty is quite smooth, all the company has to do is follow the compliances within the stipulated period of time.
|AGM (Annual General Meeting)||30thSeptember|
|AOC-4||Within 30 days of AGM|
|MGT-7||Within 60 days of AGM|
|Income Tax Return||30th September|
Yes, it is the candidate's decision to incorporate a Section 8 Company as a private or public limited company in the wake of meeting the consistence necessity for example 2 Directors and 2 individuals if there should arise an occurrence of privately owned business and 3 Directors and 7 individuals in the event of Public Limited Company. However, One Person Company (OPC) can't be joined as a Section 8 Company according to Rule 3 of the Companies (Incorporation) Rules, 2014.
The prescription under section 149(1) of Companies Act 2013 as to having Minimum of three directors for public limited company and two directors for private limited company and maximum of fifteen directors is not applicable to section 8 company and thus there is no prescription with respect to minimum or maximum directors in a section 8 Company. However, second proviso to section 149(1) requires a woman director in prescribed class of companies. Also section 149(3) requires every company to have a resident director.