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Annual Compliance for Section 8 Company

Maintain Credibility & Safeguard Your
Non-Profit License.

For a Section 8 Company, annual compliance is about more than just filings; it's about upholding the transparency and accountability that are core to your mission. We manage your ROC and Income Tax duties to ensure you retain your license and donor trust.

Secure My Section 8 Compliance
ROC Filings (AOC-4, MGT-7) Income Tax Filing License Protection
Our Compliance Cycle

Our 6-Step Annual Compliance Process

We handle every ROC and Tax requirement methodically for a stress-free year.

1

Bookkeeping & Audit

We help you finalize your books of accounts and coordinate the statutory audit of your financial statements.

2

Board Meeting & AGM

We prepare the notices and minutes for the Board Meeting to approve the financials and for the Annual General Meeting (AGM).

3

ROC Form AOC-4

File the audited financial statements, Board's report, and auditor's report with the ROC within 30 days of the AGM.

4

ROC Form MGT-7

File the Annual Return containing details of directors and members with the ROC within 60 days of the AGM.

5

Income Tax Filings

File Form 10B/10BB (Audit Report) and ITR-7 to claim tax exemptions under Sections 12A/80G.

6

Donation Reporting

File Form 10BD to report all donations received, ensuring your donors can claim their 80G tax benefits.

The Reality

Strategic Edge vs. Operational Realities

Understanding the dual nature of compliance for a Section 8 Company.

Strategic Edge

Strong compliance is a powerful tool for building trust and attracting support.

  • Attracts Grants & CSR Funding: A clean compliance record is often the first thing grant-makers and corporate donors check.
  • Boosts Public Credibility: Demonstrates transparency and responsible governance to the public and your beneficiaries.
  • Safeguards Directors: Protects directors from penalties and disqualification associated with non-compliance.

Operational Realities

The compliance burden is significant and non-negotiable.

  • Dual Regulatory Burden: You must comply with both the Companies Act (via ROC filings) and the Income Tax Act (for exemptions).
  • Risk of License Revocation: The Central Government can revoke the Section 8 license for non-compliance, forcing the company to wind up or convert to a private limited.
  • Severe Penalties: Late filing of ROC forms attracts hefty additional fees calculated on a daily basis, which can accumulate rapidly.
Ensure Good Governance

Focus on Your Mission, We'll Handle the Mandates

Krystal7 provides a complete compliance solution for Section 8 Companies, ensuring every legal requirement is met so you can focus on making an impact.

ROC & Tax Filings
Fully Managed

Event-Based Compliance
Also Covered

Expert Support
Penalty-Free Guarantee

Protect your non-profit status.

Fill the form for a free compliance health check for your Section 8 Company!

Questions Answered

Frequently Asked Questions

Key compliance points for Section 8 Companies

The mandatory annual filings are: Form AOC-4 (Financial Statements), Form MGT-7 (Annual Return) with the ROC, and Form ITR-7 (Income Tax Return) with the Income Tax Department. Additionally, Form 10B/10BB (Audit Report) and Form 10BD (Donation Statement) are required for tax purposes.

Yes. As a registered company under the Companies Act, 2013, a statutory audit conducted by a qualified Chartered Accountant is mandatory every year, regardless of the company's income or activity level.

Missing the due dates for filing AOC-4 and MGT-7 results in a significant late filing fee of ₹100 per day, per form. This penalty continues to accumulate until the forms are filed, and there is no upper limit.

A Section 8 Company is prohibited from paying any remuneration or sitting fees to its directors. However, it can reimburse directors for legitimate out-of-pocket expenses incurred for the company's work. It can also pay a reasonable salary to a director who is serving in a professional capacity (e.g., as a CEO or project manager), subject to the provisions of the Companies Act.

Form CSR-2 is a 'Report on Corporate Social Responsibility'. It is filed as an addendum to the financial statement form (AOC-4) by companies that are mandated to undertake CSR activities. If your Section 8 company has received CSR funds from a corporate donor, the donor company will be required to report this. Maintaining good compliance makes you a more attractive partner for such CSR projects.

Even a completely inactive Section 8 Company with zero transactions must complete all its annual filings. This includes conducting an audit, holding an AGM, and filing 'Nil' returns for AOC-4, MGT-7, and ITR-7 to maintain its active status and avoid penalties.