Annual returns with CAC are a set of documents that companies are required to file in Nigeria each year. These documents provide information about the company’s activities during the year, including its financial statements, shareholder information, and any changes to the company’s structure or management.
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WHEN SHOULD ANNUAL RETURNS BE FILED?
It must be submitted once per calendar year. However, new companies are not to file annual returns within the first 18 months of their incorporation, while older companies (limited by shares or guarantee or unlimited) must file annual returns no later than 42 days after their Annual General Meeting.
Business name (sole proprietorship/ partnership) are statutorily required to file their annual returns not later than 30th June of every year except the year of incorporation. Incorporated Trustees must also submit Annual Returns for every year excluding the year of incorporation between the 30th of June and the 31st of December.
A limited liability partnership is statutorily required to file annual returns with the CAC within 60 days of closure of its financial year usually January 1st to December 31st each year.
WHAT ARE THE BENEFITS OF FILING ANNUAL RETURNS?
Filing annual returns with the Corporate Affairs Commission (CAC) in Nigeria has several advantages, including:
- Active Status: Filing the required returns means that your business is active and in good standing with the CAC. Most companies that have their status as inactive on the CAC public portal most likely have not filed their annual returns.
- Good corporate governance: Filing annual returns is an essential aspect of good corporate governance. It shows that the company is committed to transparency and accountability, which can help build trust with stakeholders such as shareholders, employees, customers, and partners.
- Access to credit facilities: Filing annual returns with the CAC can help your business access credit facilities from financial institutions. Banks and other financial institutions require evidence of legal compliance before providing credit facilities to businesses.
- Legal evidence of company information: It contains information about the company’s directors, shareholders, registered office address, and other vital information. Filing annual returns provides legal evidence of this information, which can be useful in legal proceedings and transactions.
- Avoiding penalties: Companies that fail to file annual returns on time can face penalties and other legal consequences. By filing annual returns promptly, businesses can avoid these penalties and maintain their legal status.
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HOW TO FILE ANNUAL RETURNS ON CAC PORTAL?
Only accredited agents of the Corporate Affairs Commission (CAC) (i.e consultants) or directors/business owners who registered their companies with the CAC and have a user dashboard are able to submit annual returns via the CAC portal. If you are either of these, you can follow the steps below to file your annual returns:
- Go to the CAC Portal for submitting post incorporation filings and log in using your username/email and password.
- Search for your business using either registration number, company name, address, email, or phone number of your business.
- Once you’ve located your company’s profile, click on the “Annual Returns” tab at the far left corner of the company dashboard and click on ‘Start Annual Returns Company Filing’’.
- Fill out the annual returns form according to the on-screen instructions. Make sure the information you provide is accurate because any mistakes or omissions could result in fines or other legal repercussions.
- Click “Review and Submit” once you’ve finished filling out the form to finish filing.
- Pay the required annual return filing fee and upload the company’s Financial Statement or Statement of Affairs for the year to which the returns relate.
- Once your annual returns have been successfully filed, you will get a confirmation email from the CAC.
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HOW MUCH IS ANNUAL RETURNS FOR BUSINESS NAME?
Sidebrief charges N30,000 annually for filing annual returns with the CAC in Nigeria.
Any company that fails to file annual returns as at when due will be rendered “inactive” by CAC. Therefore, all outstanding annual returns must be filed and penalty fees must be paid so as to restore a company from “inactive” or “dormant” status to “active” status on the CAC online portal