Filing Annual Returns for your business entity is a must. Find out How?

Filing of annual return is a mandatory requirement for every Business, Company or Incorporated trustee, i.e. all entities registered by the Corporate Affairs Commission must file Annual Returns. Filing of annual returns is one of the proofs that such company is still actively in operation and still engaging in business activities or otherwise. It also a requirement for post incorporation activities.

 

WHAT IS AN ANNUAL RETURN?


It is an obligation that business entities have to file which indicates the affairs of the company or how the company has been run for a specified period of time.


WHEN IS ANNUAL RETURN DUE?


Annual Returns just as the name implies must be made every calendar year (i.e. annually). However, new companies are not required to file annual returns until after the first 18 months of its incorporation. However, for older companies, the annual return is due no later than 42 days after its Annual General Meeting. Filing should be done not later than the 30th day of June each year except year of incorporation.


DOCUMENTS REQUIRED FOR FILLING ANNUAL RETURNS


The documentation required usually depends on the type of entity that wants to file annual returns. The following CAC forms are required for each entity


  1. FORM CAC 10: Annual Return for a small company
  2. FORM CAC 10 A: Annual Return for a company having shares other than a small company.
  3. FORM CAC 10 B: Annual Return for a company limited by guarantee.
  4. FORM CAC 10C: Annual Return of exempted foreign companies.
  5. FORM CAC/IT 4: Annual Return for Incorporated Trustee.
  6. FORM CAC/BN/7: Annual Return for Business Name.

 

FILING ANNUAL RETURNS PROCESS


The process for filing annual returns entails are as follows ;


Step 1:

The Applicant is expected to visit the CAC website to download the Annual Returns form or obtain same from the CAC office.


Step 2:

Upon downloading the appropriate form, the Applicant is to print and fill in necessary details, some of the information includes:


 CompanyBusiness NameIncorporated Trustee
1.Company name, address and RC NumberName of businessIT Name and Number
2.Authorized share capital, issued share capital and paid up capitalDate of RegistrationYear of Return
3.Particulars of indebtednessGeneral nature of businessFinancial year start and End
4.Financial year/ Accounting year EndFull address of businessGross income and expenditure
5.Turnover and Net assetsAnnual return for the year endedParticulars of Trustees
6.Particulars of Persons who are Directors of the Company (name, address, email, phone number etc.)Particulars of Proprietors (name, address, occupation etc.)Particulars of Governing Body
7.Particulars of secretaryParticulars of Corporation which is a proprietorSources of income in the year
8.Particulars of shareholdersFor Business Name, the form is to be signed by a proprietor 


Step 3:


The Applicant after filling the form is to visit the CAC office for assessment. The official fee for the various entities are:

Filing of annual return for a small CompanyN2,000
Filing of annual return for Private company other than a small companyN3,000
Filing of annual return for public companyN5,000
Filing of annual return for company Limited by guaranteeN5,000
Filing of annual report by foreign companiesN5,000
Filing of annual returns of ITN5,000


The above fee will be in addition to any default fee in case the Applicant has outstanding payments.


Step 4:

Upon assessment by the CAC, the Applicant then goes ahead to make payment online via the Remitta portal and prints out receipt. After payment, the Applicant is to submit the filled form with the accompanying documents:


  1. A Written copy, certified both by a director and by the secretary of the company to be a true copy, every balance sheet and profit and loss account laid before the company in general meeting held in the year to which the returns relate (including every document required by law to be annexed to the balance sheet); and
  • A copy, certified as aforesaid, of the report of the auditors on, and of the report of the directors accompanying each balance sheet.
  • Other documents evidencing the payment of all necessary fees or dues may also be annexed.

Step 5:

After submission, CAC will process the application and issue the Annual return documents for the year(s) paid for.


Failure to File Annual Returns


Failure to file annual return by corporate body may attract various consequences, which includes the payment of the default fees by defaulting company and every director or officer of the company by the CAC.

Late filing of annual return for small companyN3,000 per year
Late filing of annual return for a private company other than a small companyN5,000 per year
Late filing of annual return for public companyN10,000 per year
Late filing of annual return for Company Limited by GuaranteeN5,000 per year
Late filing of annual return for Business nameN2,500 per year
Late filing of annual return for Incorporated TrusteeN5,000 per year

 

SMALL COMPANY 


A company qualifies as a small company in a year if for that year the following conditions are satisfied:

  1. It is a private company having a share capital.
  2. The amount of its turnover for that year is not more than N2 million or such amount as may be fixed by CAC.
  3. Its net assets value is not more than N1 million or such amount as may be fixed by the Commission.
  4. None of its members is an alien.
  5. None of its members is a Government or a Government corporation or agency or its nominees.
  6. The directors hold not less than 51 percent of its equity share capital.

When filing annual returns for a small company, a certificate indicating the above mentioned conditions must be annexed to the annual returns which is proof that the company is a small company.



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