According to Nigerian law, every registered company must submit an annual return to the Corporate Affairs Commission (CAC). This report details the company’s financial performance for the preceding fiscal year. It contains information about the assets, liabilities, income, and expenses of the business. An essential legal necessity, annual return filing guarantees compliance with rules and transparency for businesses.
There are various benefits to submitting an annual return to CAC. First of all, it is a requirement that all registered companies must meet. Fines or legal action may be imposed for noncompliance. Second, annual returns give key financial data that stakeholders like creditors, investors, and future partners can use. They can use it to decide for themselves if they want to work with the company or not. Finally, submitting annual returns enables businesses to maintain transparency with the government and the general public as well as the accuracy of their data. How to Submit an Annual Return to CAC
1. Use your registered email address and password to access the CAC site. 2. On the dashboard, select the “Annual Returns” option.
4. Examine and confirm the company’s financial data and facts.
6. Send the form and wait for a response.
It is significant to remember that annual returns must be filed within 42 days following the annual general meeting (AGM) of the corporation. If you don’t, you risk penalties and legal repercussions. The cost to file annual returns varies based on the company’s categorization.
All registered corporations must, therefore, comply with the important legal requirement of making an annual return. It offers crucial financial data that stakeholders may access and aids businesses in maintaining transparency. It’s easy to file annual returns with CAC, and you may do it online. To avoid penalties and legal action, businesses must make sure they submit their yearly returns within the allotted time frame.