The Corporate Affairs Commission (CAC) receives annual returns from every firm in Nigeria as required by law. Within 42 days following the company’s annual general meeting (AGM), annual returns that detail the financial and operational operations of the previous year must be filed.
Annual returns are significant records that include vital details about a company’s ownership, management, and financial standing. The returns are sent to the CAC so that the commission can have a current list of all companies registered in Nigeria. A company’s registration may be fined, suspended, or even revoked for failing to submit yearly returns.
There are conditions that must be satisfied in order to file annual returns with the CAC. First, the annual general meeting of the corporation must have taken place within the required time range. The financial statements for the preceding year are presented at the AGM for shareholder approval. The balance sheet, income statement, cash flow statement, and statement of changes in equity are all required financial statements that must be audited by a registered auditor.
The corporation is required to get a certified true copy of the approved financial statements and other pertinent papers following the AGM. Along with the company’s yearly return form, these papers must be lodged with the CAC. Information on the company’s directors, shareholders, share capital, and other pertinent facts are included in the annual return form.
The business must sign in to the CAC portal using its registered email address and password in order to submit its yearly return. The business then decides to file annual returns and enters the necessary data. The business may then submit the paperwork and make the required payments once the information has been validated.
In conclusion, every Nigerian registered company is required to submit annual returns to the CAC. For the corporation, failing to file annual filings could have major repercussions. Therefore, it is crucial for businesses to make sure that their AGMs are held within the required time range and that their annual returns are filed as soon as possible.