Annual compliances of a section 8 company
A section 8 company files the same annual Registrar forms as other companies, and it applies its profits to its objects. Company Suggestion prepares AOC-4, MGT-7 and the meeting papers.
Which annual filings does a section 8 company make?
The MCA year has five duties.
- At least four board meetings, with not more than 120 days between two meetings.
- An annual general meeting within six months of the financial year end.
- Form AOC-4 within 30 days of that meeting.
- Form MGT-7 within 60 days of that meeting.
- DIR-3 KYC Web for every director who holds a DIN, by 30 June of every third consecutive financial year.
What is different from a private limited company?
Three rules are special to a section 8 company.
- Profits go back to the objects. A dividend is not declared.
- The company is not a small company, even when capital and turnover are small, so it does not use MGT-7A.
- The licence conditions in the section 8 approval stay in force. A change that the licence restricts needs the Central Government’s route.
The form dates match the private limited company calendar, apart from MGT-7A.
Which papers does the filing need?
The yearly set has five papers.
- The financial statements and the board report
- The auditor’s report
- A note of how the income was applied to the objects
- The list of members and directors
- The minutes of the board and the general meeting
What is the yearly order of work?
Company Suggestion runs the year in four steps.
- Board meetings are held and the income is recorded against the objects.
- The board approves the financial statements. The members adopt them at the annual general meeting.
- AOC-4 is filed within 30 days, and MGT-7 within 60 days.
- DIR-3 KYC Web is filed by 30 June of every third consecutive financial year, and within 30 days of a change in mobile number, email, or residential address.
Frequently asked questions
4 questions cover the rules that decide this registration.
Can a section 8 company pay a dividend?
No. Section 8 requires the profits to be applied to the company’s objects. A dividend to members is not allowed.
Does a section 8 company file MGT-7A?
No. A section 8 company is excluded from the definition of a small company, so the annual return is MGT-7.
How many board meetings are required?
At least four in the year, with not more than 120 days between two meetings, unless another exemption in the Act applies.
When are AOC-4 and MGT-7 due?
AOC-4 within 30 days of the annual general meeting. MGT-7 within 60 days of that meeting.