Compliance – Regville Associates

ENSURING COMPLIANCE: A STEP-BY-STEP GUIDE ON HOW TO CHECK IF YOUR COMPANY IS ACTIVE OR INACTIVE ON CAC NIGERIA AND WHAT TO DO NEXT

The Corporate Affairs Commission (CAC) is the regulatory body responsible for the registration and regulation of companies in Nigeria. It is essential to know if your company is active or inactive on CAC Nigeria as it determines the legal status of your business. In this article, we will guide you on how to check if your company is active or inactive on CAC Nigeria and what to do next.

STEP 1: Visit the CAC Nigeria Website

The first step to check the status of your company is to visit the CAC Nigeria website, www.cac.gov.ng. The website is user-friendly and easy to navigate. On the homepage, you will see a tab that says “Public Search”. Click on it to proceed.

STEP 2: Enter Company Name

Once you have clicked on “Public Search”, you will be redirected to a new page. On this page, you will see a search bar where you can enter the name of your company. It is important to note that you must enter the exact name of your company as it is registered with CAC Nigeria.

STEP 3: Review Search Results

After entering your company name, click on the “Search” button. The website will display a list of companies that match the name you entered. Review the search results to locate your company.

STEP 4: Check Company Status

When you have located your company, check the status column to see if it is active or inactive. If your company is active, it means that it is currently in good standing with CAC Nigeria, and all necessary filings and fees have been paid. On the other hand, if your company is inactive, it means that it is no longer in good standing with CAC Nigeria. This may be due to the non-payment of annual fees or non-compliance with regulatory requirements.

What to Do Next If your company is active, congratulations! You are compliant with all CAC Nigeria regulations, and your business is in good standing. However, if your company is inactive, there are a few steps you should take to remedy the situation.

STEP 1: Determine the Reason for Inactivity

The first step is to determine the reason for your company’s inactivity. This may be due to non-payment of annual fees, non-filing of annual returns, or non-compliance with regulatory requirements.

STEP 2: Address the Issue

Once you have determined the reason for your company’s inactivity, take steps to address the issue. For example, if your company is inactive due to non-payment of annual fees, make the necessary payments to bring your account up to date. If your company is inactive due to non-filing of annual returns, submit the necessary documentation to CAC Nigeria.

STEP 3: Seek Professional Assistance

If you are unsure about how to address the issue, seek professional assistance from a lawyer or accountant. They can guide you through the process and ensure that you are in compliance with all CAC Nigeria regulations.

Conclusion

In conclusion, it is essential to check if your company is active or inactive on CAC Nigeria to ensure that your business is in good standing with the regulatory body. By following the steps outlined in this article, you can easily check your company’s status and take the necessary steps to address any issues. Remember, compliance with CAC Nigeria regulations is essential for the success and longevity of your business.

Regville Associates offers end-to-end legal, tax and compliance service for companies. We assist Companies in becoming and staying regulatory compliant.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

THE IMPORTANCE OF OBTAINING A SCUML COMPLIANCE CERTIFICATE FOR BUSINESSES IN NIGERIA

In recent years, money laundering and terrorist financing have become a major threat to the stability of the global financial system. To address this issue, governments around the world have implemented various measures aimed at preventing and detecting these illicit activities. In Nigeria, the Special Control Unit on Money Laundering (SCUML) was established to combat money laundering and terrorist financing in the country. One of the key requirements for businesses operating in Nigeria is to obtain a SCUML compliance certificate. In this article, we will discuss why the SCUML compliance certificate is needed.

Firstly, obtaining a SCUML compliance certificate is mandatory for designated non-financial businesses and professions (DNFBPs) operating in Nigeria. DNFBPs include entities such as real estate agents, dealers in precious metals and stones, lawyers, accountants, and trust and company service providers. These entities are considered high-risk for money laundering and terrorist financing because they deal with large amounts of money and are in a position to facilitate illicit financial activities. The SCUML compliance certificate demonstrates that these entities are in compliance with the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) laws and regulations in Nigeria.

Secondly, obtaining a SCUML compliance certificate helps businesses to avoid penalties and legal repercussions. Non-compliance with AML/CFT regulations can result in severe penalties, fines, and even criminal charges. By obtaining a SCUML compliance certificate, businesses can demonstrate to regulatory authorities and law enforcement agencies that they are committed to complying with AML/CFT laws and regulations. This can help businesses to avoid penalties and legal repercussions, and also enhance their reputation as responsible and trustworthy entities.

Thirdly, obtaining a SCUML compliance certificate can improve business relationships and opportunities. Many financial institutions and other businesses are required by law or their own policies to only do business with entities that have obtained a SCUML compliance certificate. By obtaining a SCUML compliance certificate, businesses can demonstrate that they are in compliance with AML/CFT laws and regulations, which can enhance their credibility and make them more attractive to potential business partners and customers.

Finally, obtaining a SCUML compliance certificate can help to prevent money laundering and terrorist financing. The AML/CFT regulations in Nigeria are designed to prevent illicit financial activities and promote the integrity of the financial system. By obtaining a SCUML compliance certificate, businesses can demonstrate that they are committed to preventing money laundering and terrorist financing. This can help to deter criminals and terrorists from using these businesses to facilitate their illicit activities.

In conclusion, the SCUML compliance certificate is an important requirement for businesses operating in Nigeria. It demonstrates that businesses are in compliance with AML/CFT laws and regulations, helps to avoid penalties and legal repercussions, improves business relationships and opportunities, and helps to prevent money laundering and terrorist financing. Therefore, businesses operating in Nigeria should ensure that they obtain a SCUML compliance certificate to demonstrate their commitment to compliance and responsibility.

Regville Associates offers end-to-end legal, tax and compliance service for companies. We assist Companies in becoming and staying regulatory compliant.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

WHY NIGERIAN COMPANIES MUST PRIORITIZE PAYMENT OF ANNUAL RETURNS TO THE CORPORATE AFFAIRS COMMISSION

The Corporate Affairs Commission (CAC) is the regulatory body responsible for the formation and management of companies in Nigeria. One of the statutory obligations of registered companies with the CAC is the payment of annual returns. This is an important requirement for the compliance and sustainability of businesses in Nigeria.

Annual returns refer to the filing of financial statements and other relevant information of a company with the CAC on an annual basis. It is a mandatory requirement for all registered companies, and failure to comply can lead to penalties or the revocation of the company’s registration. The annual returns must be filed with the CAC within 42 days of the company’s Annual General Meeting (AGM).

The payment of annual returns is crucial for several reasons, some of which include:

1. COMPLIANCE WITH REGULATORY REQUIREMENTS: Payment of annual returns is a regulatory requirement that all registered companies in Nigeria must comply with. Non-compliance can lead to penalties, revocation of the company’s registration, and other legal consequences.

2. PUBLIC RECORD OF COMPANY INFORMATION: Filing annual returns with the CAC ensures that the public has access to the company’s up-to-date information, including its directors, shareholders, financial statements, and other relevant information. This promotes transparency and accountability and helps to build public trust in the company.

3. MAINTENANCE OF THE COMPANY’S LEGAL STATUS: Payment of annual returns is essential to maintain the legal status of the company. A company that fails to file its annual returns for a consecutive period of time may be struck off the register of companies. This can have serious consequences for the company, including the inability to engage in legal transactions, inability to access loans, and other financial support.

4. ACCESS TO FINANCIAL SUPPORT: Companies that comply with regulatory requirements such as payment of annual returns are more likely to have access to financial support, including loans and other forms of financial assistance. This is because compliance with regulatory requirements is an indication of good corporate governance and financial management.

5. TRAVELLING REQUIREMENTS: It is also important to note that Embassies now require companies to present their active company documents as evidence of their legal standing. An “inactive” status could result in Embassies not considering a company as an eligible business for visa applications.

In conclusion, the payment of annual returns to the Corporate Affairs Commission is a legal requirement that is essential for the compliance and sustainability of businesses in Nigeria. It promotes transparency, accountability, and good corporate governance, and helps to maintain the legal status of the company. Companies should ensure that they file their annual returns on time to avoid penalties and other legal consequences. It is also important to note that an “inactive” status could result in Embassies not considering a company as an eligible business for visa applications, tenders, or other services.

Therefore, Nigerian companies should prioritize payment of annual returns as part of their corporate compliance obligations. This will help to ensure the continued growth and success of their businesses.

Regville Associates offers end-to-end legal, tax and compliance service for companies. We assist Companies in becoming and staying regulatory compliant.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

SERVICES EXEMPTED FROM VALUE-ADDED TAX (VAT) IN NIGERIA

In our last article, we wrote about the Goods exempted from Value Added Tax (VAT), in this article we shall continue on the services exempted from VAT in Nigeria. VAT as earlier defined is a tax levied on the value added to goods and services in the process of production and distribution.

Here are some of the services that are VAT-exempt in Nigeria:

1. EDUCATIONAL SERVICES: Educational services provided by approved institutions, including primary and secondary schools, colleges, and universities, are exempt from VAT. This is to encourage the growth of education in Nigeria and reduce the cost of education for students.

2. HEALTH SERVICES: Health services provided by approved hospitals, clinics, and other health care providers are exempt from VAT. This is to ensure that essential health services are affordable and accessible to all Nigerians.

3. RELIGIOUS SERVICES: Religious services provided by approved religious organizations, including churches and mosques, are exempt from VAT. This is to support the activities of religious organizations and ensure that they can provide essential services to the public.

4. CHARITABLE SERVICES: Charitable services provided by approved non-profit organizations, including those that provide relief to the poor and the vulnerable, are exempt from VAT. This is to support the activities of charitable organizations and ensure that they can continue to provide essential services to the public.

5. EMERGENCY SERVICES: Emergency services, including firefighting and rescue services, are exempt from VAT. This is to ensure that essential services are accessible and affordable to all Nigerians in times of emergency.

6. TRANSPORTATION: Both transportation services and shared transport systems, such as Uber and Bolt, are exempt from VAT. Additionally, public transportation and commercial airlines are also free from VAT. This exemption helps to keep transportation costs low for the general public and makes essential services more accessible and affordable for all.

7. MICROFINANCE AND MORTGAGE SERVICES: Services rendered by unit microfinance banks and mortgage institutions are exempt from VAT. This is to support the growth of these essential financial services and to encourage their development in Nigeria.

8. EXPORTED SERVICES: All exported services are exempt from VAT. This is to encourage the growth of Nigeria’s export industry and to make Nigerian services more competitive in the international market.

9. AGRICULTURAL EQUIPMENT RENTAL AND LEASING: The rental or lease of tractors and other agricultural equipment for agricultural purposes is exempt from VAT. This is to support the growth of Nigeria’s agricultural sector and encourage investment in this industry.

In conclusion, Nigeria’s VAT-exempted services aim to reduce the tax burden on the general public and support essential services. The government recognizes the importance of these services in the daily lives of Nigerians and wants to ensure that they are accessible and affordable to all.

Regville Associates offers end-to-end legal, tax and secretarial service for companies. We assist Companies in becoming and staying regulatory compliant.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667