Hey
there! We are back with our Chronicles of Becky.
there! We are back with our Chronicles of Becky.
Becky
has been running her company for five years now. Her staff strength had grown
to 15 full time and part time workers. Her business was growing and so was her
clientele.
has been running her company for five years now. Her staff strength had grown
to 15 full time and part time workers. Her business was growing and so was her
clientele.
One
Monday morning, Becky got to work and as usual she picked up one of the national
dailies (she usually buys them from the newspaper vendor down the road).
Monday morning, Becky got to work and as usual she picked up one of the national
dailies (she usually buys them from the newspaper vendor down the road).
As
she flipped through, a particular headline caught her eyes. It read:
she flipped through, a particular headline caught her eyes. It read:
“CAC
To De-list 50, 000 Companies Over Annual Returns”.
To De-list 50, 000 Companies Over Annual Returns”.
She
went ahead to read it again and discovered that the Corporate Affairs
Commission was set to remove the names thousands of companies from their
register for failing to file their annual returns.
went ahead to read it again and discovered that the Corporate Affairs
Commission was set to remove the names thousands of companies from their
register for failing to file their annual returns.
Looking
back she remembered that her lawyer had mentioned it to her some years back,
but she ignored him then and said she would make the payment later. Immediately
she called her lawyer and asked to help her with the payment of the fees. The
initial fee was N8,000 but she ended up paying an additional N24,000 as penalty
for late payment.
back she remembered that her lawyer had mentioned it to her some years back,
but she ignored him then and said she would make the payment later. Immediately
she called her lawyer and asked to help her with the payment of the fees. The
initial fee was N8,000 but she ended up paying an additional N24,000 as penalty
for late payment.
Case
Analysis.
Analysis.
The
Corporate Affairs Commission has made it compulsory for every registered
company and business name to file their annual returns at the end of each year.
For newly registered companies, the first annual returns should be filed after
18 months of incorporation while for sole proprietorship its 6 months.
Corporate Affairs Commission has made it compulsory for every registered
company and business name to file their annual returns at the end of each year.
For newly registered companies, the first annual returns should be filed after
18 months of incorporation while for sole proprietorship its 6 months.
The
headline above, was released in September 2015 and according to the Registrar
General, 9,347 companies had so far been de-listed by the commission since
inception for failing to file their annual returns.
headline above, was released in September 2015 and according to the Registrar
General, 9,347 companies had so far been de-listed by the commission since
inception for failing to file their annual returns.
Why
should my Company pay annual returns?
should my Company pay annual returns?
1. Failure to pay
annual returns puts your company at risk of being de-listed by the CAC. When a
company is delisted, it means its name has been struck off the register of the
CAC. Meaning your company no longer exist.
annual returns puts your company at risk of being de-listed by the CAC. When a
company is delisted, it means its name has been struck off the register of the
CAC. Meaning your company no longer exist.
2. You cannot carry
out any post incorporation process without payment of annual returns. This
means you cannot request for CTC of your Company’s certificate, you can’t
change your directors, secretary or address and so many more.
out any post incorporation process without payment of annual returns. This
means you cannot request for CTC of your Company’s certificate, you can’t
change your directors, secretary or address and so many more.
3. Filing annual
returns when due will prevent businesses from payment of penalties that apply
for late filing of annual returns.
returns when due will prevent businesses from payment of penalties that apply
for late filing of annual returns.
4. Up-to-date
annual return filing is usually a criterion for most contract bids in public or
private establishments.
annual return filing is usually a criterion for most contract bids in public or
private establishments.
Note
that the penalty for each year is N3,000 so be wise and make hay while the sun
shines because you never can tell when you will need to process something at
the CAC.
that the penalty for each year is N3,000 so be wise and make hay while the sun
shines because you never can tell when you will need to process something at
the CAC.
Thanks
for reading till the end. It will be nice to know your thoughts on this. Catch
ya!
for reading till the end. It will be nice to know your thoughts on this. Catch
ya!
Ed’s Note – This article
was originally posted by the author here.
was originally posted by the author here.