12 Dec, 2022
FREQUENTLY ASKED QUESTIONS ABOUT ANNUAL RETURNS TO THE CORPORATE AFFAIRS COMMISSION (CAC)
You have probably heard about Annual Returns and wondering what it means. You have a registered business, company or non-governmental organization with the Corporate Affairs Commission known as CAC and wondering what else after registration. After registering your business, you are expected to file annual return to the CAC, the body responsible for the registration and regulation of registered entities.
We have tried answering all these frequently asked questions on annual returns.
WHAT THEN IS THE ANNUAL RETURN?
Annual Return is a mandatory statutory payment made to the Corporate Affairs Commission by every registered entity (business name, company, incorporated trustees) to show that the entity is still a going concern.
I HAVE NOT COMMENCED BUSINESS WITH MY REGISTERED BUSINESS DO I FILE RETURNS?
Whether you have commenced business or any activity with the registered entity, you are expected to file/pay annual returns to the corporate affairs commission every year except the year it was registered. This shows that your registered business is a going concern with the commission.
IS ANNUAL RETURN NOT THE SAME AS TAX TO THE FIRS?
Annual Return is not the same as tax! It is not tax paid to the Federal Inland Revenue Services (FIRS)or the State Inland Revenue Service (SIRS) Whether you commenced business or not, you are to notify the commission CAC by filing returns of your registered entity every year except the year it was registered for business names and incorporated trustees, while companies can file 18 months after registration and within 42 days after their general meeting.
CAN I NEGOTIATE THE FEE SINCE I AM YET TO COMMENCE BUSINESS?
Annual Return is statutory. The fee for annual returns is fixed. This means if you have a business name and your turnover is more than 10 (ten) million Naira, you would still pay the same annual return fee as a business that is yet to commence any activity.
WHAT ARE THE CONSEQUENCES OF NOT FILING MY RETURN AS AT WHEN DUE?
DEADLINES FOR FILING ANNUAL RETURNS
Fathenso Professional Services can quickly and easily help you file your annual return and update your status with the CAC. send us an email at email@example.com or call 09029926107
Written by Victory Aburime, ACIS
copyright 2022 FATHENSO PROFESSIONAL SERVICES