Every registered business in Nigeria is required to file Annual Returns with the Corporate Affairs Commission (CAC) to remain compliant and active. It is a mandatory filing for business entities and organisations, and it is immaterial that the business is not functioning yet or making profits.

So whether it is a Business Name, Limited Liability Company or an Incorporated Trustees - NGOs, foundation, club, church, association, etc it is mandatory to file your annual returns.

Not filing attracts penalty, and In this context, penalty means payment of annual returns plus late filing fee for each year not filed.

So how can you avoid paying this penalty? It is to file your annual returns as @ when due.

Another penalty is Striking Off where the business’ or organisation's name may be struck off or delisted from the CAC register if returns are not filed for 10 consecutive years.

We’ve seen this play out as the CAC published news in December 2024 about the commencement of striking-off of not less than 100,000 companies from its registers for failure to file their annual returns.

So in essence, failure to file may eventually result in penalties such as striking off or delisting!

🌟 WHY FILE YOUR ANNUAL RETURNS?

✔️ It is to keep your business legally active

✔️ To avoid CAC penalties and fines

✔️ To maintain your business’ credibility 

✔ ️ To prevent your business from being struck-off or delisted. 

Don’t wait until it’s too late! Keep your business compliant and running smoothly. 🚀

See the video on our YouTube channel for the filing schedule fees and timelines. Do check out our social media channels to view more articles and videos.