CAC business registration

How To Change Inactive to Active on CAC Portal If Your Company Was Delisted

Last updated on November 29th, 2023 at 09:18 am

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If you registered a company with the Corporate Affairs Commission and you failed to file a return every year, your company status will change to “inactive”.

If the status of your company or business is “inactive”, the issue is resolvable. We’ll guide you on how to change your status to “active” on CAC portal.

Change Inactive Status to Active on CAC Portal
Screenshot from CAC Search Portal

Before that…

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What is delisting?

Delisting is one of the terms associated with the stock exchange which means the removal of security from stock listing. It usually happens when an issuer (company) is declared bankrupt or violates critical rules. It can also be voluntary or involuntary.

Delisting in CAC Context

1) Failure to file an annual return means that your company has violated the Companies and Allied Matters Act (CAMA), 2020 as such the commission has taken appropriate action against your company as required by sections 417 to 425

2) Filing annual returns shows that your company is in operation in the eye of CAC, failure to do that is treated as “company no longer carries out business.”

3) Your company will no longer be regarded as a legally registered entity

4) Your business will lose all privileges so accorded them by law.

5) You can no longer use the name as a legal entity in accessing government loans

6) Delisting is another way the CAC generates more revenue by compelling businesses and companies to pay their return backlogs.

Also Read:  How To Solve CAC Queried Registration Issue

CAC’s Long List of Delisting

As an agency of government in charge of regulation and supervision of business and company formation in Nigeria, CAC has been involved in many cases of threatening to delist registered companies or businesses.

On March 8, 2016, the agency in a statement stated that it would delist 38,717 dormant companies from its register because they failed to file their annual returns.

On Tuesday, February 21, 2017, Nigerian Tribune reported that 38,000 dormant companies were suspended for being inactive for a long period of time.

In the year under review, specifically in August 2017, another 44,000 companies were “removed” from its database, according to a report by Economic Confidential while it continued to review records of firms.

“The laws says that if the commission has a reasonable cause that the company is not carrying on business while in operation, then it has to enquire from that company and if no response is received within three months, the commission can proceed to strike off the name of the registered company, the DG was quoted as saying by The Punch in 2017.

Again in 2019, CAC showed that it wasn’t tired of expunging inactive firms from its companies. In October of that year, it delisted another batch of 40,000 companies, claiming that the affected firms recorded no activity.

What the law says about annual return

Chapter 16, section 417 of the Company and Allied Matters Act, 2020 clearly states that:

“Every company shall, once at least in every year, make and deliver to the Commission an annual return in the form, and containing the matters specified in sections 418, 419 or 420 as may be applicable”

Also Read:  Request A Refund From CAC: 7 Key Details To Include In Your Email (Letter)

How To Change Inactive Status to Active on CAC Portal

One of the ways to check this is to run a check on the company’s status at https://search.cac.gov.ng/home,

If you see the tag, “inactive” you have to pay up your annual return

Your status will automatically change to active when your payment if confirmed by the commission.

This above action means you’re legally bring back your company on the database of CAC

To avoid the repeat, regularly file your company’s annual returns, that’s one of the easiest ways to avoid delisting.

Why is my business showing “inactive” after paying an annual return?

If your annual return is up to date but your status is showing “inactive”, send evidence of payment and a complaint to CAC via spu@cac.gov.ng.

What are the consequences of delisting a company by CAC?

You may not be able to use the same company to access credit facilities from any financial institution. “Inactive” status may also affect the credibility of your company in the eye of potential foreign partners.

This is because most foreign firms love to dig into the record of a company before a business agreement is made.

Can CAC delete a company name from its database?

Delisting doesn’t mean deletion. CAC doesn’t delete companies from its database rather it imposes sanctions like tagging such violators as “inactive”

Specifically, on February 24, 2021, issued a disclaimer that it doesn’t delete a registered company:

Commission does not “delete” registered entities. Companies and Incorporated Trustees may only be dissolved (with or without liquidation) and Business Names removed from the Register in accordance with the procedures prescribed in the Companies and Allied Matters Act 2020 (CAMA). And none of these procedures includes “deletion”.

What does it mean when a business is inactive?

To CAC, an inactive business is no longer in business, to prove the commission wrong, ensure to file an annual return every year.

How do I know if a company is dormant?

To know if a company is dormant, run a check on CAC search database, if it reads active, it means your record is up to date. If it reads, “inactive” it means its record isn’t up to date as such, is treated as dormant.

What’s the cost of reactivating my company on CAC Portal?

For a Business Name, it’s NGN5,000 per year. For a Registered Company, it’s NGN10,000. However, a service charge will be applied if you’re using a third-party service like CAC accredited agent.

Above all, reactivating your company means your annual return should be up to date

I need assistance

If you need help on how to change inactive to active on your business, check the details on our Contact Us page

Author

  • Opeyemi Quadri

    Ope is a finance writer and researcher with 10+ years of experience in content creation. His interests cut across decentralized finance, investment, foreign exchange, government policies and politics.

25 thoughts on “How To Change Inactive to Active on CAC Portal If Your Company Was Delisted”

  1. Good morning sir,

    I registered a Business Name in 2014 but not filling annual report since then. I checked the BN status on the CAC portal but it was no longer there as inactive or active. Please I need your guidance .

    Best regards

  2. Good morning,

    Please I just paid and filed my annual return for 28 years because it has been inactive and I have gotten acknowledgment for the payments.

    But then my status is yet to change to active for 2 weeks now

    1. Actionable Info

      If you’ve filed your annual return and still showing “inactive”, send evidence of payment and a complaint to CAC via spu@cac.gov.ng

  3. Nnamdi Aguamba

    Good day sir,
    My company was registered in 2006 and have not paid for any annual return. How much should we pay now and what is the penalty if any?

    1. Actionable Info

      Hello Mr Nnamdi ,

      The details are in our guidelines. However, if you would like more clarifications kindly send a message to us on WhatsApp line 08027024054

  4. Alozie Stanley Nnamdi

    Good day.
    I want to know how to confirm your payment has been received by CAC?

    As I have not pay my yearly return since 2020, how many years do I have to pay now ( do I have to pay for this 2023 that just started)?

    1. Hi Lady K,
      You can either visit CAC office or talk to an accredited agent.

      We have an accredited CAC agent in our team to resolve this problem for your company. Send an email to us at infomediang19 @ gmail . com

  5. Good day.

    I have a complaint. My company was incorporated in the year 1972, the name was well captured as JOSCAS ENGINEERING AND CONTRACTING COMPANY NIGERIA LIMITED unfortunately, I engaged in CTC of certificate and Status report.

    I noticed that the name was wrongly captured this time as JOSGAS ENGR. CONTRACTING CO. NIG LTD.

    Please I need your assistance.

    Thanks

    1. Hi,

      Contact CAC support or reach out to a CAC-certified agent to assist with you with the correction of the company name. Our team can successfully resolve the issue for you. Contact send a message on 08027024054 (WhatsApp only)

  6. Taiwo kazeem Adeola

    Good morning sir/ma my name is taiwo kazeem Adeola my company name is t.a.adeola nig ltd my complain is that my company is inactive for some times now and I have paid for my anual returns from 2010 to 2021 since last year and now my company is not active please what is next to do?

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