In Nigeria, businesses registered with the Corporate Affairs Commission (CAC) must complete several post-incorporation services to maintain compliance and support their operations. These services ensure that a company remains in good legal standing and meets regulatory requirements under the Companies and Allied Matters Act (CAMA). We’re going to keep it simple; here are key post-incorporation services:
1. Annual Returns Filing
Filing annual returns is a legal obligation under the Companies and Allied Matters Act (CAMA). This filing essentially summarises your company’s activities over the past year.
Why does it matter? Filing annual returns keeps your business active and in compliance with the law. Private companies must file within 42 days of their incorporation anniversary, while public companies have six months from the end of their financial year.
Failure to file can lead to penalties or even deregistration.
2. Updating Corporate Information
Your business might change as it grows, which needs to be reflected in CAC records. Common updates include:
- Change of Directors or Secretaries: Appointing, removing, or resigning directors or secretaries.
- Change of Registered Address: Notify the CAC within 14 days of moving your business office.
- Change of Name: Requires CAC approval and official updates to all company documents.
These updates ensure transparency and avoid legal disputes down the line.
3. Share Capital Adjustments
As your business scales, you might need to increase or reduce its share capital. This process involves filing the necessary resolutions and paying the required fees to the CAC.
4. Tax Registration and Compliance
Securing a Tax Identification Number (TIN) is essential for compliance as part of post-incorporation services. Additionally, depending on their operations, businesses may need to register for Value Added Tax (VAT) or Withholding Tax (WHT).
Regular tax return submission is crucial to avoid fines and maintain compliance with tax regulations. Staying proactive in managing these obligations fosters stakeholder trust and ensures smooth business operations.
5. Holding Statutory Meetings
Under CAMA, companies must hold the following:
- Annual General Meetings (AGMs): These meetings review financial performance, appoint directors or auditors, and pass key resolutions.
- First Meeting of Directors: This meeting will set operational frameworks within six months of incorporation.
6. Maintenance of Statutory Records
Every company must maintain statutory books and registers, including:
- Registers of members, directors, and shareholders.
- Minutes of meetings and resolutions.
These records provide transparency and support good corporate governance.
7. Alterations to Company Documents
You might need to update your Memorandum and Articles of Association as your business evolves. Whether changing objectives or altering company powers, such updates require a special resolution and filing with the CAC.
8. Winding Up or Liquidation
For businesses that decide to cease operations, the winding-up process must be officially filed with the CAC. This ensures all obligations are settled and the company is legally dissolved.
9. Compliance with Industry-Specific Requirements
Certain businesses, such as those in finance or healthcare, may need additional licenses or filings with regulatory bodies like the Central Bank of Nigeria or NAFDAC.
Why Are Post-Incorporation Services Important?
- Firstly, it helps ensure legal compliance. Your company or business could avoid fines, penalties, or deregistration.
- Post-incorporation services give you access to opportunities. These opportunities include grants, funding, government contracts, and more. These are only possible if you maintain eligibility for these unique accesses through compliance and complete the Post-incorporation list after registration.
- Thirdly, it positions your business or company as a credible partner to stakeholders and also demonstrates professionalism.
- Experience business growth through enabled structural adjustments like increasing share capital or attracting investments.
Post-incorporation services are more than administrative tasks—they invest in your business’s long-term health and credibility. Staying proactive about compliance ensures your company remains competitive and ready for opportunities.Consult BeeBot, your top corporate services professional, for expert guidance on navigating post-incorporation requirements. Follow us on social media to stay updated on the latest news on business registration, CAC news and laws, and trends in the Nigerian business environment. Whether you’re in Nigeria or planning to start a Nigerian business while overseas, we are on your speed dial.