How to File for Annual Returns for your Business with CAC in Nigeria 2024
How to File for Annual Returns for your Business with CAC in Nigeria
Filing annual returns with the Corporate Affairs Commission (CAC) in Nigeria is a crucial responsibility for every business owner or director.
It ensures that the regulatory body is kept updated on your company’s activities, composition, and financial position.
In this article, I will show you how to file for annual returns for your business with CAC in Nigeria covering the requirements and costs associated with filing annual returns, the consequences of late filing, and real-life examples to emphasize the importance of timely compliance.
Before going deeper into how to file for annual returns for your business with CAC in Nigeria, below are some things you need to know:
What are Annual Returns for Your Business?
An annual return is known as a yearly statement submitted by an active registered business name or company to CAC.
Unlike financial documents or tax returns, the purpose of the annual return is to inform CAC about the company’s current status and operations.
Neglecting to file annual returns for several years may lead to delisting, which can be costly in terms of fines and reactivation fees.
Requirements for Filing Annual Returns with CAC
To successfully file annual returns, you will need the following documents:
- A photocopy of your Business Certificate
- A copy of the Company’s CAC Form7
- A photocopy of the Memorandum of Association
In the past, an applicant had to download CAC Form 10 or obtain it from branch offices.
However, in recent times, the CAC has since gone digital, making it more convenient to file annual returns online.
Cost of Filing Annual Returns with CAC
Note: The cost of filing annual returns actually depends on the type of business entity.
For a Limited Liability Company (LLC), the annual return fee is N5,000, while for a Business Name, it is N3,500.
Additionally, if the return is filed late, there is an additional late payment fee of N5,000 for both LLCs and Business Names.
It is essential to file on time to avoid accumulating unnecessary penalties.
How to File for Annual Returns for your Business with CAC in Nigeria In 2024
Now, let’s see how to file annual returns for your business with CAC in Nigeria today:
The first step on how to file annual returns for your business with CAC in Nigeria is to begin with account registration. You should register as a user instead of “as an accredited agent”.
You can do this by the CAC registration portal via “https://pre.cac.gov.ng/register/new” to complete the form.
On the registration page, these are what will be required to provide:
- Name
- Date of birth
- Gender
- Nationality
- Means of identification etc.
After providing those details on the registration page and clicking on the register button, you will receive a notification in your email, kindly visit the email that the notification was sent to.
In your email, you will find a link, click on it and you will be redirected to a new page which will show you your registration is being confirmed.
After that, proceed and login with the password and username you provided earlier.
Once you have landed in your CAC account, select the category of company, it could be a business name, limited or NGO.
Select annual returns, fill in the information of the company, and pay, also, ensure you download the online receipt and approved cac annual returns after the commission approves your filing.
When to File Annual Returns with CAC for Your Business
Every Limited Liability Company (LLC) and Business Name in Nigeria is required to file their annual returns no later than 30th June each year.
Newly incorporated companies are given an initial grace period of 18 months, while Business Names have 12 months before filing their first return.
Existing companies are expected to file their returns within 42 days after their Annual General Meeting.
Consequences of Late Filing of Annual Returns with CAC
Failure to file annual returns can lead to severe consequences for your business:
Delisting: CAC may delist your company if annual returns are not filed for several years.
Fine and Reactivation Fees: If you wish to reactivate your company after delisting, the fine may exceed the actual return.
Limited Access to Government Contracts and Credit Facilities: Non-compliance with annual returns can hinder your ability to apply for government contracts or credit facilities.
Importance of Filing Annual Returns
FAQs On How to File for Annual Returns for your Business with CAC in Nigeria
Here is a list of some answers to the frequently asked questions on How to File for Annual Returns for your Business with CAC in Nigeria with answers:
What is the purpose of filing annual returns with CAC?
Filing annual returns with CAC is essential to keep the regulatory body updated about your company’s activities, composition, and financial position.
It is not a financial document or tax return but rather an application to show that the company is still active in business.
What happens if I fail to file annual returns for my business?
Failure to file annual returns can have serious consequences.
Your company may be delisted if you fail to do so for several years.
Additionally, you will incur fines if you wish to reactivate your company after delisting, and it may be difficult to apply for government contracts or credit facilities.
How much does it cost to file annual returns?
The cost of filing annual returns varies depending on the type of business entity. For a Limited Liability Company (LLC), the annual return fee is N5,000, while for a Business Name, it is N3,500.
There is an additional late payment fee of N5,000 for both LLCs and Business Names if the return is filed after the due date.
When should I file annual returns for my company?
Limited Liability Companies (LLCs) and Business Names are required to file their annual returns with CAC no later than 30th June every year.
Newly incorporated companies have a grace period of 18 months, while Business Names have 12 months before filing their first return.
Existing companies must file their returns within 42 days after their Annual General Meeting.
Can I file annual returns online?
Yes, CAC has gone digital, making it more convenient to file annual returns online. You can access the CAC portal and complete the filing process without visiting a physical branch office.
What documents do I need to file annual returns?
To file annual returns, you will need a photocopy of your Business Certificate, a copy of the Company’s CAC Form 7, and a photocopy of the Memorandum of Association.
Can I check the status of my company’s annual returns on CAC’s database?
Yes, you can check the status of your company’s annual returns on the CAC database. Head to the CAC home page, click “Public Search,” and use the RC Number of the company or the BN number of the business to search. If the company is inactive, it will be indicated in the search results.
