Corporate Affairs Commission (CAC) on Wednesday 9th of September, 2015 said 50,000 companies would soon be delisted for failing to file their annual returns. The Registrar General of the CAC, Mr Bello Mahmud, disclosed this in an interview with the News Agency of Nigeria (NAN) in Abuja.
What is Annual Return?
Annual return is a mandatory and statutory requirement for every registered business entity or organisation. Whether you are running an Enterprise, Limited liability Company, or Incorporated Trustee (Churches, Clubs, Mosques etc), you are required to file annual returns every year with the CAC. Section 370 to Section 378 of the Companies and Allied Matters Act (CAMA) 1990 provides for the filing of annual returns by companies and prescribe penalties for default.
The law requires every registered company to file its first annual return 18 months after registration, and not later than 42 days after holding its annual general meeting for the year.
The essence of this exercise is to keep the records of the company up to date and to show that the company is a going concern i.e. not dormant
What are the benefits of filing annual returns?
- It is ‘STATUTORY and MANDATORY’ to file annual returns.
- Filing annual returns when due will prevent businesses from payment of penalties that apply for late filing of annual returns
- It saves time especially in case of an urgent need to obtain a document or process any other application at the CAC. Where annual returns are outstanding, the CAC will not process any application by a registered entity unless the annual returns have been filed up to date and penalties, if any, paid up. Thus, no activity will be permitted on the record of any entity that fails to comply with annual returns. For e.g. an application to obtain certified copies of documents or processing a change of directors will not be processed till annual returns are dealt with.
- Up-to-date annual return filing is usually a criterion for most contract bids in public or private establishment
How can Regville Associates be of help?
Regville Associates is a registered Legal and Consultancy firm also an ACCREDITED AGENT of Corporate Affairs Commission. Regville Associates takes forte in registration of Companies, Trademark, Patent and Design with a plethora of success stories to show for it.