Corporate Entity Responsibilities With CAC To File Annual Return On Or Before The Due Date: It’s Implication Thereof By Akinwumi John Ayobami, Esq

Do you know what Annual Returns is? When is the due date to file it? What is the implication if you did not file it as at when due?

What is Annual Returns?

An annual return is the return file to the Corporate Affairs Commission as to the profit made on investment, over a period of time as it is mandated under the Company and Allied Matters Act (CAMA). Corporate entities such as Private Limited Companies, Registered Businesses, and Incorporated Trustees are mandated under CAMA to file annual returns with the commission on a yearly basis.

Arguably, nonprofit organizations do not make profit on investments. However, according to section 55 of Companies Income Tax Act specifically mandated all companies, registered with CAC must file returns irrespective of tax exemptions conferred on their income. This helps to encourage accountability, fairness and good records keeping of all functions and activities as well as operations within the country.

When is the due date for filing

Every organization registered® with CAC must file annual returns not earlier than 30th June or not later than 31st December every year with the exception of organization which is still within the grace period to file its returns. That is to say a newly registered corporate entities being filing their first annual returns, not later than 18 months after incorporation or registration while the older corporate entities file their annuals returns not later than 42 days after their Annual General Meeting (AGM).

What is the procedure for filing Annual Returns?

The corporate entity is expected to get the particular Form listed and fill, payment of necessary fees, verification of the payment slip and submission with the commission.

Specific Forms for filing Annual Returns?

FORM CAC 10: Annual Return for a small company.
FORM CAC 10 A: Annual Return for a company having shares other than a small company.
FORM CAC 10 B: Annual Return for a company limited by Guarantee.
FORM CAC 10 C: Annual Return of an exempted foreign companies.
FORM CAC/BN/7: Annual Return for Business Name.
FORM CAC/IT 4: Annual Return for Incorporated Trustee.
It should also be noted that Section 375 (1)(a)(b) of CAMA provides for the documents that must annex the Form.

Furthermore, for every post incorporation or post registration filing, it must be accompanied with the copy of Annual Return. When a company a company goes to the CAC to deal with any post incorporation matter, the commission may not give any audience to such defaulting company until the annual return of such company has been duly filed. The default may be treated by the CAC as a defunct company and such company may be removed or struck out from the list of the companies by the commission.

In conclusion, Filing of annual return is therefore mandatory as failure to do so may attract various consequences, which may include the payment of default fees as may be imposed on defaulting company and every director or officer of the company by the CAC.

AKINWUMI John Ayobami, Esq.
Associate at J. S. Okutepa SAN & Co., john_akinwumi@yahoo.com. +234701332890, Twitter: @Surpass_john
LinkedIn: https://www.linkedin.com/in/akinwumi-john-ayobami-esq-847471b3