CAC Clarifies Importance of Annual Returns for Businesses

The Corporate Affairs Commission (CAC) has clarified that paying taxes does not equate to fulfilling all statutory obligations for Nigerian businesses, particularly regarding annual returns. In a video titled “Annual returns are not tax, know the difference!”, the CAC explained that annual returns are regulatory filings that provide updated information about registered entities, confirming their status on the CAC register.

This requirement applies to all registered entities, including business names and incorporated trustees, such as NGOs, churches, and cultural associations. Businesses must file annual returns even if inactive during the relevant period.

Failure to comply can lead to penalties and potential deregistration. The CAC encourages businesses to keep their filings current to maintain good regulatory standing.

Annual returns can be submitted through the CAC’s online platform, requiring updates on details like turnover and net assets, and may necessitate financial statements or audited accounts in certain cases.