14/05/2025
CAC ANNUAL RETURNS FILING
CAC Annual Return is a yearly statement made by entities registered with Corporate Affairs Commission about their Composition, Activities and Financial Position to the Commission in accordance with the provision of Company and Allied Matter Act (CAMA2020)
THE IMPORTANCE OF ANNUAL RETURNS
1. STATUTORY REQUIREMENT: As stipulated in Section 374 of CAMA, every entity registered with the Corporate Affairs Commission (CAC), regardless of whether it’s a Business Name, a Private or Public Company (Limited by Shares, Guarantee, or Unlimited), Incorporated Trustees, Or a Partnership, must File Annual Returns. Complying with this requirement ensures that your business or organization is in line with the law
• ACCESS TO POST-INCORPORATION SERVICES: Companies that have neglected their annual return filings may find themselves locked out of the range of post-incorporation services provided by the CAC. These services encompass crucial activities such as obtaining Certified True Copies of incorporation documents, modifying share capital, making changes to directors, partners, trustees, or business particulars, and altering registered addresses. Should you have unaddressed annual return filings, you might be required to rectify these first, potentially causing delays in your operational plans.
• CONFIRMATION OF GOING CONCERN STATUS: Going Concern is one of accounting principle that states that a business entity will continue its operations in the foreseeable future and will not be liquidated. The only effective means of demonstrating to the Corporate Affairs Commission that your business is indeed in operation is to ensure the timely filing of annual returns. Falling short of this deadline may result in your business or organization being categorized as “inactive.”
• ELIGIBILITY FOR CONTRACT BIDDING: Proof of CAC annual returns holds a pivotal role in qualifying for contract bidding, a requirement set by some private and public entities. Without this evidence, your company might not be considered eligible for lucrative bidding opportunities.
• ENHANCED PUBLIC CONFIDENCE: In the world of business transactions and investments, trust is paramount. Both individuals and corporate entities typically conduct due diligence on organizations they intend to engage with. The absence of filed annual returns can inhibit the Corporate Affairs Commission from providing meaningful information about your company, potentially diminishing the confidence of potential partners or investors.
CONSEQUENCES OF NOT FILING CAC ANNUAL RETURNS
1. Denial of Access to CAC POST INCORPORATION SERVICES
2. Removal/ Delete of the entity from CAC Data Base (In 2023, 94,581 Entities were Published in National Daily’s for Strike Off from the CAC Data Base. In 2024, 80,000 Entities were deleted from CAC Data base.)
