The queue was endless and I couldn’t help the frown on my face as I really needed to head back to the office. Different hot topics came up for discussion as we all patiently waited for our turn. I couldn’t contribute much in the hot topic, I guess I was a little too cold for that. I could literally hear my boss yell at me as I rehearsed my line of excuse when all of a sudden I heard a man speaking with so much confidence, I leaned towards him as I got engrossed in his gist “I have a company and I have been doing business for a long time without making any form of remittance to the government and nothing will happen.

The most ridiculous one is annual returns who am I returning to? In this Nigeria, instead of paying that money I will reinvest it into my business” and it looked as if everyone agreed with him. At that moment I felt the need to write on annual returns. The Nigerian society needs to be reoriented on the statutory requirements for the running of any business. It is note worthy that the Nigerian youths of today have embraced entrepreneurship and a good percentage of success is recorded. The sermon of service and packaging is indeed being preached but the importance of statutory compliance is to an extent being ignored. This write up is intended to teach the basic reasons for compliance with the filing of annual returns by businesses.

SQUASHING THE MYTH ON ANNUAL RETURNS

The topic on the payment of annual returns is one of national concern. Recently, the Corporate Affairs Commission delisted thousands of companies from the register of companies operating in Nigeria. The sad part is that most of those companies were practically still doing business whereas statutorily they were not recognized by the Nigerian government. Many people still believe in some myth about filing of annual returns which is what this write up seeks to address.

  1. FILING OF ANNUAL RETURNS IS NOT IMPORTANT

Annual returns is just as important as the running of your business. It is the only means possible for you to inform the government that you are still in business. Default in filing annual returns for a long time can cause your company to be delisted from the register of companies in Nigeria which automatically puts you out of business statutorily.

A company cannot effect post incorporation changes such as change of directors, increase in share capital, change of address etc without first filing annual returns up to date.

  1. I CAN FILE ANNUAL RETURNS AT ANYTIME

Statutorily, a new company becomes due for annual returns 18months after registration and is expected to file annual returns. An already existing  company becomes due 42 days after the  companies annual general meeting and where there is default in filing, the Corporate affairs Commission has placed penalty for delay in filing of annual returns.

  1. ANNUAL RETURNS IS ONLY FOR COMPANIES

Every registered business under the companies and allied matters act ranging from business name, companies limited by shares to incorporated trustees are statutorily expected to file annual returns at the end of every business year.

  1. ANNUAL RETURNS IS TOO EXPENSIVE

The filing of Annual returns is – contrary to popular opinion – cheaper than getting your company name delisted from the register of companies or businesses in Nigeria.

Many persons undermine the consequence of default in annual returns compliance but it sometimes go beyond delisting. A court case can come out of such a scenario. When your company gets delisted it therefore means that your company name is available for use by other persons. So imagine a business you have run for twenty years being in court for misleading the public and carrying out business in the name of a company that now belongs to another person or a group of persons as the case maybe which was originally yours. The demerit goes beyond finance, it affects your emotional and psychologically state and at that moment, regret becomes your companion.

The option of relisting is only available to you when no other entity has taken up your name and it comes with a fee. We at 618bees are at your service to ensure your statutory compliance in a very transparent, reliable, affordable and fast way without you breaking your back.

 

For more information contact us at www.618bees.com.  We are willing and able to serve you and help you get statutorily packaged and ready for business.

AUDU LUCKLYN

TEAM 618BEES