Annual Returns filings

Annual Returns filings

July 23, 2019

The Annual Returns of a company can be defined as a yearly statement that gives essential information about a company’s activities, composition and financial position and which must be filed by every registered company/business with the appropriate authority.

In Nigeria, filing annual returns with the Corporate Affairs Commission (CAC) is a mandatory statutory requirement for every registered business, this includes Limited liability companies (private or public), sole proprietorships/Business Names and incorporated Trustees. A company’s first Annual Returns is due for filing not later than 18 months after its inception, subsequently it should be filed annually as the name implies not later than 30th June. The filing dates could differ for each company depending on their financial year end but must be filed not later than 42 days after its Annual General Meeting.

In order for a company to file its returns yearly, it needs to attach to the completed prescribed CAC Form, its statement of Affairs if it is yet to commence operations or its Audited Financial Statement where it has commenced operations. This attachment is not necessary for Sole Proprietorships/Business Names.

Filing returns annually enables the CAC to keep up to date records of registered companies which shows that a company is operative and not dormant. It is not only mandatory but also a statutory requirement for companies registered with the commission to file returns as at when due as the law empowers the CAC to strike off the name of a business from the Register of Companies where there are reasonable basis to believe the company is not in operation and the failure to file annual returns is one of the major criteria relied on by the commission to determine the status of a company.

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advise, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advise from the particular facts and circumstances at issue from a lawyer.

This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

Efe Ugoboro

Team 618Bees

More Articles

Search

Connect With Us

Got any questions?

If you are having any questions, please feel free to ask.

Send us an email

Frequently Asked

  • When are Annual Returns due for filing?

    A company’s first Annual Returns are due for filing after 18 months of its inception, subsequently it should be filed annually as the name implies. The filing dates could differ for each company depending on their financial year end but must be filed not later than 42 days after its Annual General Meeting.

    The Annual Returns for Business Names is due not later than the 30th of June each year except in the year the business was registered.

  • What’s the difference between a business name and an LLC?
    • A business name is a sole proprietorship, usually owned and managed by one individual only. Legally, the sole proprietor and his business are one. It simply means an individual trading with an alias. The sole proprietor is personally liable for all business related obligations.

    • A limited liability company on the other hand is a separate business entity from the individuals that hold its shares and act as directors. Legally, it’s a separate business entity and a person on its own who can transact business, own property separate from its owners and can sue or be sued. 

  • What is an execution clause in a contract?

    This is the section in which the parties sign the contract or agreement.

  • Do I have to physically drop off my product sample at NAFDAC office?

    No, you can choose to have it sent to NAFDAC office

  • Is it legal to transfer the personal data you obtained legally to another person?

    No, its not legal. This is because the law prohibits anyone from transferring the data of a third party to another person without consent from the third party to do same even if the data was rightfully obtained in the first instance.

  • Can industrial design be protected under copy right law?

    Yes, it can be protected under copyright law as a work of Art.

  • Is there a penalty for late renewal of registration of products with NAFDAC?

    Yes, there is a late renewal fee, which is dependent on the category of the product.

  • What’s the difference between a business name and an LLC?
    • A business name is a sole proprietorship, usually owned and managed by one individual only. Legally, the sole proprietor and his business are one. It simply means an individual trading with an alias. The sole proprietor is personally liable for all business related obligations.

    • A limited liability company on the other hand is a separate business entity from the individuals that hold its shares and act as directors. Legally, it’s a separate business entity and a person on its own who can transact business, own property separate from its owners and can sue or be sued. 

  • Can I trademark my logo and name separately? Why is this a good idea?

    Yes you can. The advantage is that it gives you the opportunity to have more than one logo or the opportunity to change your logo easily as opposed to registering the name and the logo as one trademark.

Call Us Now on +234 901 719 0079 Chat on WhatsApp