Why filing Annual Returns for your Nigerian Business is mandatory

All business entities registered with the Corporate Affairs Commission (CAC) are required to file Annual Returns every year that they remain in operation. This requirement extends to businesses, partnerships, limited liability companies, and incorporated trustees. However, the timeline may vary depending on the nature of the entity.

For business names (sole proprietorships and partnerships), the Annual Returns for each preceding year must be filed before June 30^th of the following year, except the year in which the business is registered. The same requirement applies to Incorporated Trustees, which are also required to file their Annual Returns for every year except the year of incorporation.

For a company, however, the time for filing its Annual Returns is dependent on when the AGM holds for each year. The first AGM of a company must be held not later than 18 months after incorporation, and every AGM afterwards must be held not later than 15 months of the last one.

Further, the Annual Returns must be filed within 42 days after the AGM. However, the deadline for filing the returns for a preceding year is June 30^th of the following year, after which the Commission may impose a penalty or take any other measures it deems necessary in the circumstances.

Where a business entity fails to file its returns before the deadline set out:

1. The Status of the company may be de-activated, under the assumption that it is no longer in operation. The status would only be re-activated after the Annual Returns have been filed up to date;

2. Companies in default of filing returns cannot process other post-incorporation services, such a share transfer, application for CTC, appointment or removal of director, and so forth;

3. The Commission also imposes penalties on the company/business for late filing, and this penalty must be paid at the point of rectifying the filing situation;

4. A company or business name may be struck off the register of companies or business names (as the case may be), if the business is in default of filing returns for 10 consecutive years.

The process of filing Annual Returns has been made easier, as the entire process can be completed on the CAC Portal. All that is required is to employ the services of an accredited agent, to carry out the filing on your behalf.

To avoid your company being de-activated or delisted, or paying penalties, it is important to file your Annual Returns before they become due.

618 Bees can quickly and easily help you file your Annual Returns with the Corporate Affairs Commission (CAC). Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079/08080819653. 618 Bees will complete your application with the CAC.

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