Annual Returns filings

Annual Returns filings

October 19, 2018

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

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Frequently Asked

  • Why must I file Annual Returns?

    It is a mandatory statutory requirement under the Companies and Allied Matters Act to file Annual Returns yearly. 

  • 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 SON?

    SON stands for ‘Standards Organization of Nigeria’

  • Can a minor be a company director?

    No, a minor cannot be a director. A minor under Nigerian Law is anyone who is below 18 years of age.

  • Why do I need a trademark?

    You need to register your trademark because if you don’t register it, someone else can! It helps identify you as the source ad indicates a consistent level of quality of your products and services. Securing a registered trademark protects your brand, and provides you with tools to prevent someone else from using similar signs and riding off the back of your business.

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