How to Avoid CAC Annual Returns Penalties for 2022 & 2023 – Do you really want to avoid paying this penalty? A penalty payment is an extra payment other than the official fee. And, for CAC most of their penalties are 100% of the original official fee.
How the Penalty Works:
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That is why instead of paying N3000.00 for business name enterprise annual returns, you will be paying N6,000.00. And by the time the accredited agent adds the cost of the paperwork and his/her fees, you will be paying as high as N10,000 to N15,000 per year for your enterprise’s annual returns. Then you will be thinking that somebody is ripping you off; No. you are the one ripping off yourself.
So, you see that what will cost you an average of N7,000, the accredited agent’s fees inclusive, is now costing you more.
What is the meaning of CAC Annual Returns?
An annual return is not your business financial record. It’s not also your business tax papers. I tell you what it is. It is a statement by an active registered business name or company to keep CAC updated about the company’s activities, composition, and financial position. It’s there simply to show that your company or enterprise is still active. That is why if you delay in rendering this report CAC can mark your name in her portal INACTIVE.
How to Avoid CAC Annual Returns Penalties for 2023 & 2024
Marked as Inactive Company or Enterprise:
The implication of marking your name inactive in the CAC portal is that other businesses, government agencies, or individuals may cease dealing with you. Do you know what that means? And let me inform you that unmarking your business name or company from Inactive is not a simple matter. The truth is that it will take CAC more than one month to remark your name as Active again.
How to Avoid CAC Annual Returns Penalties for 2023 & 2024
When are the annual returns due?
As a matter of fact, Limited Liability Company (LLC) and Business Name, and every registered business in Nigeria are expected to file annual returns with CAC no later than 30th June every year. The only exception to this is when the calendar year in which the business name is registered does not end by December.
New Businesses Start Filing Annual Returns When?
As a newly incorporated company, you have a grace of the first 18 months to file in annual returns. However, Business Name is given 12 months before filing a return. So, for a business name, annual returns must be made after a year of incorporation.
Then after these initial settings, all companies are expected to file their return not more than 42 days after its Annual General Meeting.
Consequences of Failing To file annual returns:
In this regard, three things will happen;
- Your company may be delisted. That is if you continue to fail to do this for several years.
- You will pay a penalty. We narrated above how you will be paying double the normal fees.
- And, your company may be marked Inactive. And for this, you will find it difficult to apply for a government contract or government credit facility.
- How to Avoid CAC Annual Returns Penalties for 2023 & 2024
Penalties:
These penalties as stipulated by C.A.C. does not include professional processing fees, paper work and documentation involved. So, fees depend on the number of years of default involved.
- Late filing of annual return for small company 3,000.00 per year
- Late filing of annual return for a private company other than a small company 5,000.00 per year
- And, late filing of annual returns for public company 10,000 per year
- Late filing of annual return for Company Limited by Guarantee 5,000.00 per year
How to Avoid CAC Annual Returns Penalties for 2023 & 2024
Annual Return Requirements:
Now that you know the consequences of filing the annual returns of your company, see below what you need to do.
Key Requirements for Filing of Company Annual Returns include;
- A photocopy of your Business Certificate
- A copy of the Company’s CAC Form 7.
- Photocopy of the Memorandum of Association
- And, financial information – audited account or Statement of affairs.
Required Services:
In conclusion, if you must How to Avoid CAC Annual Returns Penalties for 2023 & 2024, get our services.
For C.A.C. documentations;
- Render annual returns for you @ C.A.C. and obtain other certifications/reports for you
- Register your business appropriately with C.A.C.
- Make incorporation changes for you @ C.A.C. – change of MEMART, Director, Shareholding, etc.
Now, come along for your other entrepreneurial services, and ask for the following service offerings.
- A bankable Business Plan for all scopes of operation
- Train and apply for CBN/BOI/ NIRSAL MFB AGSMEIS and other loan facilities
- Apply and obtain SCUML certificate for your banking purposes
- Apply and obtain contract bidding compliance certificates for you – PENCOM, NSITF, ITF, BPP IRR, Tax Clearance certificate
- Auditing Services and Tax management services
- Apply and obtain regulatory certificates – Import/Export licenses, NCC licenses, NAFDAC certificates etc.
- And other consultancy services.
How to Avoid C.A.C Annual Returns Penalties for 2022 & 2023
The above services are available at any time on contact and request.
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Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.
