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 trustee in Nigeria. The return is a statutory document that provides a snapshot of the company’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.
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 business 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 the company’s ability to do business, as it will be unable to enter into any legally binding agreements or contracts.
To ensure compliance with the annual return requirement, it is advisable for companies to appoint a qualified company secretary or engage the services of a professional firm such as Aekley Solicitors to handle their company secretarial duties. This will ensure that the company is kept up to date with the latest regulatory requirements and that all necessary documents are filed on time.
In conclusion, every registered company in Nigeria must comply with the annual return, which 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 and to engage the services of a professional firm to handle the company’s secretarial duties.
At Aekley Solicitors, we offer expert company secretarial services to make sure that your business stays up to date with the latest legal requirements and that all necessary documents are filed on time. Do not wait until it is too late. You may schedule a consultation with us now to learn more about our firm’s secretarial services.
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