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Why Your CAC Annual Returns Is Important

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You might have been hearing from corporate consultants about annual returns,and keep wondering what is an annual return?

well an Annual return in the context of corporate compliance is simply a yearly monetary payment filed by every registered business name, limited liability company or NGO within a specific calendar year to the corporate affairs commission.

It is a statutory procedure taken by every registered business name,company or incorporated trustee. it serves as a reminder and an evidence to the commission that the business,company or NGO is still in operation,with all the information such as the profiles of directors, proprietors or trustees sent to the commission at the period of registration still the same.

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If there is any change in the management of the company,or change in the address of the company, or change in the objectives of the company or NGO, the commission expects the registered business to first file for an annual return for that year before it can make those changes.

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An annual return is filed within the cac calendar year,accordingly cac calendar year for annual return ends on 30th June of every year.

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The timeline for annual return for registered business name is filed within 18months of the incorporation of the business,subsequently each annual return is expected to be filed within the specific calendar year, the annual return is expected to be filed within 42 days after the Annual general Meeting.

for Incorporated trustees such as foundation,Club,Church,Association,Organisations ,Annual Returns for incorporated trustees should be filed between 30th June and 31st December for the preceding financial year. NOTE: Companies and Allied Matters Act, 2020 Section 862. we can see that this is a clear departure from the practice obtainable for limited liability companies and business names.

HOW TO FILE AN ANNUAL RETURN WITH CAC ONLINE IN 2021 & 2022;

a. Go to https://post.cac.gov.ng/

b. create an account as a user not as an accredited agent

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c.select the category of company, it could be business name,limited or NGO.

D. select annual returns

e. fill the information of the company and pay

f.download the online receipt and approved cac annual returns , when the commission approves it.

The corporate Affairs commission made series of changes,since the passage and signing of the CAMA 2020 to an Act. if you cannot follow the above steps simply follow the alternative step.

1.Go to cac agent and ask for cac annual return form for business name,limited liability company or IT,you don”t need all of them,you only need the one concerning your business(you can contact us for this form)

2.Fill your Form and Return it to cac agent for assessment .

3.Pay the request fees for your annual return for the year.

4.CAC Agent Returns the annual return forms to cac approved by cac to you .

5. Store the approved annual return forms for the year,this is necessary in the event you need to file for changes in the future.

FILING ANNUAL RETURNS FOR COMPANY(LLC AND LLP/LP).

1.To file an annual returns for limited liability company,you need to draft the companies statement of affairs,and an audited statement of account of the company,prepared and signed by a chartered account.

2.Obtain cac annual returns forms for limited liability company,fill it and make sure all the directors still in the management of the company signs where necessary.

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3.Attach and return the filled annual returns forms to the commission through designated courier service company.

4. After assessment,the commission makes a payment quotation for the company.

5.Then generate the remita reservation code number for this transaction and make payment.

6.Return the forms to the commission with all the evidence of payment.

7. collect your approved returns forms after the commission has approved the payment.

this procedure can be used to file annual returns for both small company or big company annual returns.

How TO FILE ANNUAL RETURNS With CAC ONLINE IN 2022.

Well, in 2022 filing annual returns with the Corporate Affairs Commission is now faster and easier, when compared to the previous years. it is important to note with this new method, you can file your previous years annual return,like cac annual returns of 2021, cac annual returns of 2020, cac annual returns of 2019 e.t.c ,it is advised to follow the earlier provided steps or contact us.

HOW TO CALCULATE CAC ANNUAL RETURNS FOR BUSINESS NAME :

First you need to know the official fees of cac annual returns for business name,the official fee is N3,000 ,failure to file within cac calendar year will attract penalty ,this is also N3000 ,note that a business name has moratorium of Eighteen months after registration to start filing annual returns. meanwhile the official fee for annual returns for both limited company and incorporated trustee is N5000.

PENALTY FOR LATE FILING OF ANNUAL RETURNS FOR A PARTICULAR YEAR.

The corporate affairs commission has a calendar year, accordingly late filing of annual return within a calendar year attracts penalty.

1. Late filing of increase in share capital of public company 10,000
2. Late filing of increase in share capital of private company 5,000.00
3. Late filing of annual return for small company 3,000.00 per year
4. Late filing of annual return for a private company other than a small company 5,000.00 per year
5. Late filing of annual return for public company 10,000 per year
6. Late filing of annual return for Company Limited by Guarantee 5,000.00 per year
7. Late filing of statement in form of schedule 14 under section 553 100.00 per day for each director, company secretary and company
8. Late filing of notice of appointment of liquidator 5,000.00
9. Late filing of resolution for winding up 500.00 for each director and the company secretary
10. Late filing of notice of change of company name 5,000.00
11. Late filing of notice in alteration of memorandum and articles of association 5,000.00
12. Late filing of notice/deed of release 5,000
13. Late filing of notice of changes in particulars of directors 5,000.00
14. Late filing of return of allotment by public company 10,000.00
15. Late filing of return of allotment by private company 5,000.00
16. Late filing of notice of change in shareholding 5,000.00
17. Late filing of notice of change in registered address 50.00 per day for every director, company secretary and company
18. Late filing of charges by public company 10,000.00
19. Late filing of charges by private company 5,000.00
20. Late filing of other documents (miscellaneous)

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REQUIREMENT FOR FILING ANNUAL RETURNS

In filing an annual returns for a business name,you are expected to provide the following information to your agent: Proprietors Full name and Address,Proprietors Phone number,Email address,date of birth and the identity card used in registering the business name,the business address and objects,et.c.

BENEFITS OF FILING CAC ANNUAL RETURNS

A timeous filing of cac annual returns, has alot of benefits,for your business,company or incorporated trustee, a timely filing of cac annual returns ,helps your company/business or registered organisation avoid payment of penalty, accumulation of penalty can lead to much expenses when you finally decide to comply.

it is important to file your cac annual returns on time, to avoid having your company in the list of businesses, the commission have de-registered.

A timeous filing of annual returns helps the commission to know that the business /company registered is still active, and every other information supplied to the commission is still valid

Filing of annual returns timely helps you have an updated annual return record, this will help you in any event your company decides to make any post incorporation changes.

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FILE ANNUAL RETURNS FOR INCORPORATED TRUSTEES,IS IT NECESSARY?

Most times people ask questions whether an incorporated trustee,suppose to file an annual return? the reason for such question is that since incorporated trustees are not primarily set up for trading and profit making,they are supposed to be under the exceptions?

Under the CAMA 2004,Section 607 it provided that “The trustees of the corporation shall not later than 30th June or later than 31st day of December each year(other than the year in which it is incorporated),submit to the commission a return showing, among other things, the name of the corporation, the name ,address AND occupations of the trustees, and members of the council or governing body, particulars of any land held by the corporate body during the year, and of any changes which have taken place in the constitution of the association during the preceding year.

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it is glaring what the position of the law is, for annual returns for incorporated trustees.

It is hereby advised that the deadline for payment of annual returns for 2022 ends in June 30th 2022,every business name,company that fails to pay before June 30th 2022 will be in default.

Hammed Tajudeen is the Editor-In-Chief of Blaze Newz Nigeria, graduated from Osun State Polytechnic, Iree with Higher National Diploma (HND) in Mass Communication.

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