Why filing Annual Returns for your Nigerian Business is mandatory

Why filing Annual Returns for your Nigerian Business is mandatory

March 22, 2024

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 30th 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 30th 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;

 

  1. 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;

 

  1. 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;

 

  1. 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.

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

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Frequently Asked

  • When are Annual Returns due for filing?

    A company’s first Annual Returns are due for filing after 18 months of its inception, subsequently it should be filed annually as the name implies. The filing dates could differ for each company depending on their financial year end but must be filed not later than 42 days after its Annual General Meeting.

    The Annual Returns for Business Names is due not later than the 30th of June each year except in the year the business was registered.

  • What’s the difference between a business name and an LLC?
    • A business name is a sole proprietorship, usually owned and managed by one individual only. Legally, the sole proprietor and his business are one. It simply means an individual trading with an alias. The sole proprietor is personally liable for all business related obligations.

    • A limited liability company on the other hand is a separate business entity from the individuals that hold its shares and act as directors. Legally, it’s a separate business entity and a person on its own who can transact business, own property separate from its owners and can sue or be sued. 

  • What is an execution clause in a contract?

    This is the section in which the parties sign the contract or agreement.

  • When can I start renewal of the registration of my product(s) with NAFDAC?

    You can start renewal 6 months to the date of expiry.

  • What is classified as personal data?

    Name, photograph, personal health/bio information, account/financial information, phone number, Address, date of birth, place of birth, Email address, etc.

  • Can an industrial design be sold?

    An industrial design is a company asset and the right to sell is in the hands of the registered owner.

  • Can I process/register multiple products at NAFDAC at the same time?

    Yes, you can process/register multiple products at the same time

  • Can my kids be shareholders in my company?

    Yes your kids can hold shares in your company but there must be a minimum of two adult shareholders before kids can be included.

  • Will my trademark registration in Nigeria protect me worldwide?

    No, all intellectual property (IP) rights which includes trademarks are territorial, which means you are protected in the countries in which you register them.

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