Table of Contents
- How to File Annual Returns in Nigeria
- What are Annual Returns?
- When Should You File Your Annual Returns?
- How to File Your Annual Returns
- Penalties for Late or Non-Filing of Annual Returns
How to File Annual Returns in Nigeria
If you are a registered business in Nigeria, it is mandatory to file your annual returns with the Corporate Affairs Commission (CAC). This is a requirement of the Companies and Allied Matters Act, and failure to comply can result in penalties, fines or even the deregistration of your business. In this article, we will guide you on how to file your annual returns in Nigeria.
What are Annual Returns?
Annual returns are documents that must be submitted yearly to the CAC by registered businesses in Nigeria. This document contains information about the company's directors, shareholders, and financial statements for the past year. It is a way for the government to keep track of your business activities and ensure that you are in compliance with the law.
When Should You File Your Annual Returns?
Businesses in Nigeria are required to file their annual returns within 42 days after their Annual General Meeting (AGM). The AGM is a meeting held by the company's shareholders to discuss the performance of the company and to make decisions on its future. In most cases, the AGM is held within six months after the end of the financial year.
How to File Your Annual Returns
To file your annual returns, follow these steps:
Step 1: Prepare Your Financial Statements
Before filing your annual returns, you need to prepare your financial statements. This includes your income statement, balance sheet, and cash flow statement. These statements should be prepared in compliance with the International Financial Reporting Standards (IFRS).
Step 2: Obtain Your Company's e-Certificate of Incorporation
To file your annual returns, you need your company's e-Certificate of Incorporation. This document is issued by the CAC and contains information about your company's registration. You can obtain this document on the CAC website.
Step 3: Log in to Your CAC Account
To file your annual returns, you need to log in to your CAC account. If you do not have an account, you can create one on the CAC website. Once you have logged in, select the "Annual Returns" option.
Step 4: Complete the Annual Returns Form
The Annual Returns Form contains information about your company's directors, shareholders, and financial statements. You need to complete this form accurately and submit it online. The CAC will review your form and notify you if there are any errors or omissions.
Step 5: Pay the Filing Fee
After submitting your annual returns form, you need to pay the filing fee. The fee is determined by the CAC and varies depending on the size of your company. You can pay the fee online using your debit card or at any CAC office.
Step 6: Obtain Your Acknowledgement Slip
Once you have completed the filing process and paid the fee, you will receive an acknowledgement slip. This document serves as proof that you have filed your annual returns and contains information about the filing date and fee paid.
Penalties for Late or Non-Filing of Annual Returns
If you fail to file your annual returns within the specified time frame, you will be liable to pay a penalty fee. The penalty fee for late filing is ₦5,000 for the first day and ₦1,000 for each subsequent day. If you fail to file your annual returns for three consecutive years, the CAC may deregister your company.
Filing your annual returns is an important obligation for businesses in Nigeria. It is a way to keep track of your business activities and ensure that you are in compliance with the law. By following the steps outlined in this article, you can file your annual returns quickly and easily. Remember to file your annual returns within 42 days after your Annual General Meeting to avoid penalties.
Can I file my annual returns manually?
No, you can only file your annual returns online on the CAC website.
What happens if I make a mistake on my annual returns form?
The CAC will notify you if there are any errors or omissions on your form. You can make the necessary corrections and resubmit the form.
Can I file my annual returns before my AGM?
No, you can only file your annual returns after your AGM.
Do I need a professional to prepare my financial statements?
No, you can prepare your financial statements yourself as long as they are in compliance with the International Financial Reporting Standards (IFRS).
What happens if I fail to pay the filing fee?
Your annual returns will not be processed until you pay the filing fee.