How to make a Company active on CAC portal is a question a lot of business owners ask. The Corporate Affairs Commission strongly advises registered companies to consistently file annual returns to avoid deregistration. It is not sufficient for individuals to simply register companies; they must also submit returns in accordance with the law. The only way the commission can ascertain if a firm is active or not is through the filing of yearly returns by companies. Companies that have not filed annual returns to date are classified as inactive, and subsequently, these inactive companies may be delisted by the Corporate Affairs Commission.
Why Is My Company Showing Inactive On CAC?
This is because you have not filed your Annual Returns. It is mandatory for every registered business to file their annual returns with the Corporate Affairs Commission no later than the 30th of June every year. This is the only way to let the Commission know that your company is still operating. If the CAC lists your business as ‘active’, this means that your business has filed all its annual returns to date with the CAC.
What Are Annual Returns?
Annual returns are a set of documents that companies are required to file with the Corporate Affairs Commission (CAC) 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. 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.
Recommended reading: Filling annual returns with CAC
How Do I Know If My Company Is Active On CAC Portal?
Visit the CAC’s online search page here. Type your business’s name into the search box, and click the ‘search’ button. If your business is registered with the commission, the search result will indicate its status as either ‘active’ or ‘inactive’.
Recommended reading: Why Business name registration is Important ?
The following steps should be followed to make your company active on CAC Portal:
- Calculate the number of years from which the company has failed to pay annual returns till the present, times the amount to be paid yearly plus the penalty for late filing.
- 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 the 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 an acknowledgment letter from the CAC and your status report will be updated from inactive to active.
Does CAC Registration Expire?
A company is regarded as a legal entity once it registers with the CAC and it remains registered unless certain events occur that lead to its dissolution or deregistration. The business name and company certificate issuance are tied to conditions that the owners must abide by. These requirements may include filing annual returns, submitting financial statements, and paying annual fees to the CAC.
The failure of the owners of the company to file annual returns will propel the commission to delist such business. In essence, failure to file annual returns repeatedly for years is a ground for the expiration of the CAC certificate. Another ground for the expiration of the CAC certificate is where the directors or proprietors utilize such to carry on illegality. Filing annual returns is a regulatory obligation for your registered entity because it allows the CAC to determine your consistency in business and ensure the ongoing validity and active status of your company.
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