Running a business in Nigeria comes with its unique set of regulatory responsibilities. One of the most critical, yet frequently overlooked, is the annual submission of your company’s returns to the Corporate Affairs Commission (CAC). Failing to file your annual returns is a costly mistake that can lead to significant penalties, lock your company out of essential services, and even result in your business being struck off the register.
In the spirit of keeping your enterprise compliant and thriving, we’ve broken down the process into five simple steps. Think of this not as a daunting task, but as a mandatory annual health check for your business that keeps you on the right side of the law and avoids those unnecessary late-filing fines!
5 Essential Steps for Hassle-Free CAC Annual Returns Filing
Staying compliant with the CAC is easier than many entrepreneurs assume. By following these steps, you can ensure a smooth process and focus on what you do best: growing your business.
Understand the Due Date and Penalty Structure
Every registered company in Nigeria, whether it is a Limited Liability Company (LTD), an Incorporated Trustee (IT), or a Business Name, must file its annual returns. For a company (LTD), the first return is due 18 months after incorporation, and subsequent returns are due no later than 42 days after your Annual General Meeting (AGM), which must be held within 9 months after your financial year-end.
For companies that are not holding an AGM, the return is due by the 30th of June of the following year. Late filing attracts penalties that accrue daily and increase significantly, making timely submission essential to your bottom line.
Gather All Required Documents and Information
Before logging onto the CAC portal, you must have all the necessary information readily available. For Limited Liability Companies, this includes your company’s full details (RC number, registered address), a list of current directors and shareholders (including their details), a certified true copy of your Statement of Affairs (for small companies) or Audited Financial Statements, and payment receipts for stamp duty and filing fees. Having these documents prepared by a professional accountant or company secretary will ensure the financial data meets the required standards.
Complete the Online Filing Process via the CAC Portal
All annual returns filing is now done electronically through the CAC’s dedicated online platform. You or your accredited professional must log into the portal and navigate to the Annual Returns section.
The system will guide you through uploading the required documents and filling out the statutory forms, such as the CAC/CD/2 for companies. This digital process is faster and more transparent, but requires accurate data input; any inconsistencies can lead to the submission being rejected, delaying the process and risking late fees.
Pay the Statutory Filing Fees and Stamp Duty
Once you have successfully completed the electronic forms and uploaded your financial statements, the system will generate the total amount payable. This includes the statutory CAC filing fee and the mandatory Stamp Duty payable to the Federal Inland Revenue Service (FIRS). Payments are typically made online through the portal’s integrated gateway. Note that the cost of filing increases with each year the returns are delayed, so it is prudent to complete both the documentation and payment phases promptly to secure your submission.
Obtain and Secure the CAC’s Acknowledgement
A successful filing is only complete when you have the official proof from the CAC. After your submission and payment are processed and approved, the CAC will issue an electronic acknowledgement receipt and a copy of the stamped annual return form.
This is your most important document, serving as irrefutable proof of compliance. Keep this digital document secured and readily accessible, as you will need it when seeking government contracts, opening corporate bank accounts, or applying for regulatory licenses and permits. Stay compliant, stay profitable!
Are you a prospective or established business seeking detailed guidance on how to go about filing your annual returns with the CAC or even starting your own business in line with the Nigerian business regulations? Contact us today to get started.
At Beebot, your business is our concern.