Nigerian firms still operational have been advised by the Corporate Affairs Commission (CAC) to file their annual returns or face delisting from its register.
Why this matters: The filing of annual returns is the commission means of ascertaining companies still in existence or dead. Hence the significance, according to Moses Adaguusu, Head Public Affairs, CAC.
“The filing of the annual return by a company keeps the commission abreast that it is still actively in operation and still engaging in business activities or otherwise,’’ Adaguusu said.
He stressed the need for companies to heed the advice to avoid been cautioned.
“We want companies to embrace voluntary compliance so that there won’t be penalties. Penalties run into millions of naira and that is enough to close a company.”
Further Details: Adaguusu also advised companies to comply with these rules on time to avoid being slammed with penalties. In addition, he encouraged companies to update their information with the CAC, as he noted that it is the only way companies could get registered under the Bureau of Public Procurement (BPP).
“Companies that execute contracts would have difficulties getting paid if they are not registered with the BPP.
“Companies that want to do business must be on the Bureau of Public Procurement and before you are registered with BPP you must be up to date with CAC.
“This is another window, encouraging companies to come and update with CAC,’’ Adaguusu said.
In a recent Nairametrics article, the Commission delisted 40,000 registered companies from the nation’s registration records for non-performance and dormancy.
The exercise was carried out to make sure that only relevant companies remain in the database of the CAC. However, the commission noted that previously delisted companies could still reapply.
What you should know: An annual return is a mandatory requirement every enterprise or incorporated trustees must file annually by delivering to CAC a return in the prescribed form containing specified matters related to the organisation in accordance with Companies and Allied Matters Act (CAMA).