Many business owners in Nigeria mistakenly believe that once registration with the Corporate Affairs Commission (CAC) is complete, no other contact with the regulator is required until changes occur. However, CAMA mandates all companies to file Annual Returns.
What are Annual Returns?
An annual return is a statutory report that businesses must submit to CAC every year. It discloses details about company health, registered address, current directors, shareholdings, and a summary of financial turnovers. It is not tax filing (which is paid to FIRS).
Why Must You File?
Filing annual returns keeps your registration profile active on the public database. If a business fails to file returns for a year, the CAC tags the profile as INACTIVE. Inactive businesses cannot change directors, upgrade structure, obtain credit, or bid for contracts. Prolonged failure to file can lead to CAC striking the company off the register entirely.
Warning: Late filings incur daily compounding penalty charges. The longer you wait, the higher the penalties accumulate.
Step-by-Step Filing Guide
- Audit Company Accounts: Compile a simple financial summary showing assets, liabilities, and gross revenue.
- Log in to CAC portal: Enter your portal credentials and search for your entity filing section.
- Fill Return Forms: Input director details, shareholding updates, and turnover totals.
- Pay Filing & Penalty Fees: Process payment via Remita.
- Await Registrar Approval: Once verified, CAC updates your registry status to "ACTIVE".