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. Annual Returns with respect to registered Business Names are to be filed not later than 30th day of June every 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 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.
By the Company Secretarial and Regulatory Compliance Department of Aekley Solicitors, Nigeria.
Originally Published 27 March 2023
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
