FILING OF ANNUAL RETURNS IN NIGERIA
An annual return is a mandatory requirement that must be complied with by every registered company, business name, or incorporated trustees in Nigeria. The return is a statutory document that provides a snapshot of the entity’s affairs as of the end of its financial year. The return is made to the Corporate Affairs Commission (CAC) every calendar year and with respect to companies, it must be filed within 42 days after the Annual General Meeting (AGM) of the company. However, new companies are not required to file their returns within the first 18 months after their incorporation. Annual Returns with respect to registered Business Names are to be filed not later than the 30th day of June for every preceding year except the calendar year in which the business name was registered.
The objective of the annual return is to ensure that the CAC has up-to-date information about the entity’s affairs. This information is essential for the CAC to carry out its regulatory functions effectively. It is also important for investors and other stakeholders to have access to accurate and up-to-date information about the entity.
Failure to file annual returns on time can have serious consequences for an entity. Late filing attracts a penalty fee, and failure to file can result in the entity being struck off the CAC register. This can have a devastating impact on a company’s ability to do business under certain circumstances.
Annual Returns are filed on the post-incorporation portal of the Corporate Affairs Commission. To ensure compliance with the annual return requirements, it is advisable to appoint a qualified company secretary or engage the services of a professional firm to handle the entity’s secretarial duties. This will ensure that the entity is kept up to date with the latest regulatory requirements and that all necessary documents are filed on time.
In conclusion, every registered entity in Nigeria must comply with the annual return requirement. This is a crucial regulatory requirement. Not complying with this requirement can lead to significant consequences, such as penalties and deregistration. It is therefore essential to ensure that the annual return is filed on time.
By the Company Secretarial and Regulatory Compliance Department of Aekley Solicitors, Nigeria.
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