CAC Annual Returns: Essential Things You Need to Know

By Alexander Odidi, Esq. A

        Image Source

Is your business, company or NGO registered? As long as it's a going concern under the Corporate Affairs Commission (CAC), you are required to file annual returns. 

Get Your Facts Right

Annual returns are statutory fees, which means they are not optional. Every registered entity in Nigeria must pay them many business owners assume that after incorporating a business with CAC, they have no financial obligations. That is wrong. 

After registration, you must keep the business alive and active by staying compliant filing annual returns every year. 

Note: Annual returns and tax returns to not mean the same thing. While CAC annual returns are filed with the CAC, tax returns are filed with National or State Revenue Services.

Categories of Business that Must File Annual Returns with CAC 

  • Business names 

  • Limited liability companies (Limited)

  • Small companies 

  • Incorporated Trustees 

  • Public companies 

  • Companies limited by guarantee 

  • Limited liability partnerships 

  • Limited partnerships 

  • Charities, churches, mosques, NGOs

If your business falls within these categories, you must file annual returns.

Date and Deadline for Annual Returns in Nigeria 

This depends on the type of business entity and time of registration. 

  • Business names must file annual returns every year, particularly before the 30th of June for each year.

  • Limited liability companies must file annual returns after Annual General Meetings. It must be filed yearly to avoid penalties. 

  • Incorporated Trustees like churches, NGOs, and mosques must file annual returns yearly where applicable. 

  • Limited partnerships and limited liability partnerships often file at the end of their financial year. 

When Should a Newly Registered Business Pay First Annual Returns? 

A newly registered business or company is not eligible to file annual returns for the first 18 months after registration. The annual returns are not due within the calendar year but due anytime within the first 18 months after incorporation. Always ensure you know where your company stands because if your records are not up-to-date, it can affect how you engage in commercial transactions.

How Much Does Annual Returns Cost to Process? 

The cost largely depends on the type of entity being run. Business names and small companies pay a statutory fee of ₦5000 while the cost is significantly higher for public corporations and incorporated trustees. Notwithstanding, professional fees may apply. 

If you have failed to file annual returns for some years, expect to pay the statutory fees for the business, as well as penalty fees to cover for the lack of filing. You can always confirm the cost before filing. 

Dangers of Late Filing or Failure to File Annual Returns 

  • Penalties imposed by the CAC

  • Inability to access some of CAC's services, especially post-incorporation services like change of directors, removal of trustees, alterations to shares, and applications for Certified True Copies of documents. 

  • Eventually, your company may be delisted the list of registered companies. That could cause serious implications for your going forward.

Information Required to File Annual Returns 

  • Name of the business, company, or organisation 

  • Unique RC or Business number 

  • Nature of business

  • Address

  • Year of annual return your are paying for

  • Net assets information 

  • Turnover information

  • Personal details of company officials

Final Words

Annual returns filing is a huge part of running a business or company. Filing lets CAC and the world know that you're still in business. Rather than attract fines and penalties, reach out to a professional to help you know where your business stands and file appropriately.


Alexander Odidi, Esq. writes on Business Registration and Corporate Compliance. 



Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Readers should confirm current requirements with the Corporate Affairs Commission (CAC) or consult a qualified professional before proceeding with registration. LegalBizPro is not a part of, or an affiliate of CAC.

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