Last Updated on July 26, 2021 by Ope Quadri
Filing a company’s annual returns with the Corporate Affairs Commission (CAC) is very important if you don’t want your company to be delisted.
There are some misconceptions about an annual report in Nigeria. Some companies, most especially sole proprietorship, believe that they might be heavily taxed if they continue to file annual returns with the CAC. This is wrong.
Your company’s name may be removed from the commission’s database if you failed to file an annual report, you can check how to rectify the issue at: https://infomediang.com/if-cac-delist-your-company
Before we move fully into how to get that done, it’s germane to know what the jargon means in relation to business registration.
What Do Annual Returns mean?
An annual return is not the profit your company made in a year, it is not a financial document, rather it’s a record of publicly available information about your business that appears on the Companies Register on CAC database.
The information includes
- Your address
- Details of directors
- Details of shareholders
All the above details constitute annual returns which must be updated every year.
Failure to abide by this may get your company sanctioned by delisting your company from the registry database.
When to file annual returns:
Every registered business in Nigeria is expected to file their annual returns with the Corporate Affairs Commission not later than 30th June every year.
The only exception to this is when the calendar year in which the business name is registered does not end by December.
Effects of not filing annual returns on your business
CAC may delist your business name or company from the Register of companies.
The commission may not grant the request for due diligence from Banks in respect of your application for the opening of a bank account or bank loans.
You will pay penalty fees if you want to re-register your company
You will pay a filing fee
Now that you know the importance of filing annual returns of your company, see below what you need to get it done
Key Requirements for Filing of Company Annual Returns
- A copy of your business’ CAC Certificate
- A copy of the Company’s CAC Form 2 and Form 7.
- Original copy of Statement of Affairs or Audited Account as the case may be
- CAC Form 10 which can be download on CAC portal or obtained at CAC branch office
- Go for assessment at CAC office
- Head straight to remita to make payments (fee of N2,000 per year.)
- Print your receipt.
- Submit your application and get your Annual Returns document
In a situation whereby you’ve failed over the years, the years will be calculated against you PLUS the penalty.
Annual Returns filing For Sole Proprietorship or Enterprises
- Download and fill CAC Form 10 online
- Go for assessment at CAC branch office One year official fee is N2,000.
- Make payments on remita and print your receipt.
- Submit the application
- Get your Annual Returns to document for the year paid
1) Filing of annual returns doesn’t only save you the yearly penalty, it also shows that you are law-abiding
2) It will also give you an edge when accessing government loan
3) Annual returns is completely different from tax payment.
4) While an annual return is about company information like directors and shareholders and a tax return is about company finances like profit and loss.
5) However, both carry financial penalties for failing to file them at the right time