22/05/2025
Filing Annual Returns with the Corporate Affairs Commission (CAC) is a critical legal requirement for businesses and organizations registered in Nigeria. Here’s why it's important and the consequences of neglecting it:
Importance of Filing Annual Returns
1. Compliance with the Law
It is a legal obligation under the Companies and Allied Matters Act (CAMA). Filing shows your business is active and in good standing with CAC.
2. Avoidance of Penalties
Early and regular filing helps you avoid fines and extra charges imposed by CAC for late submission.
3. Maintaining Active Status
Your company remains listed as “Active” on CAC’s public record. This status is important for credibility, especially with partners, banks, or clients.
4. Ease of Doing Business
Filing annual returns regularly makes it easier to obtain necessary approvals for post-incorporation services like change of name, directors, shareholding, etc.
5. Investor and Stakeholder Confidence
Regular filing signals that your business is structured and transparent—critical for attracting investors or entering partnerships.
6. Avoiding Deregistration
Continuous default in filing may lead to your company being marked “inactive” or even struck off CAC’s register.
Disadvantages of Not Filing Annual Returns
1. Financial Penalties
CAC charges accumulating late fees for each year you fail to file, which could amount to a substantial sum.
2. Loss of Business Opportunities
Inactive status may disqualify you from tenders, grants, contracts, or funding opportunities.
3. Restriction on Post-Incorporation Services
You won’t be able to make any changes (e.g., to business address, directors, or objectives) until all outstanding returns are cleared.
4. Reputation Damage
An “inactive” or “defaulting” status on the CAC portal may reduce trust from clients, banks, or potential partners.
5. Risk of Company Name Being Delisted
Persistent non-compliance can lead to your company being removed from the CAC register, meaning it ceases to legally exist.
Avoid these risks—file your Annual Returns today with LYAM BUSINESS ENTERPRISES.
We ensure your business remains compliant, active, and trustworthy.
Contact us now: 08118454421