The Point of Sale (POS) business has become one of the fastest-growing small-scale businesses in Nigeria, providing financial services to individuals and communities. While many POS operators initially operated without formal business registration, increasing regulatory requirements have compelled many to register their businesses with the Corporate Affairs Commission (CAC). However, a large number of these business owners remain unaware of the need to file annual returns as required by Nigerian law. This article provides a detailed guide on filing annual returns for POS businesses, highlighting its importance, the legal requirements, and how to comply with ease.
What Are Annual Returns?
Annual returns are mandatory filings that every registered business entity in Nigeria must submit to the Corporate Affairs Commission (CAC) once a year. It provides a summary of a company’s or business’s operations and financial status over the past year.
For a POS business, filing annual returns ensures that your business remains in good standing with the CAC and avoids penalties or potential deregistration.
For filing of annual returns, call us or send WhatsApp message to 08155554892. 
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Why Do POS Businesses Need to File Annual Returns?
Many POS operators are unaware of the legal obligation to file annual returns, which can lead to non-compliance issues. Here are key reasons why filing annual returns is crucial for POS businesses:
- Compliance with Nigerian Law
According to the Companies and Allied Matters Act (CAMA) 2020, every registered business, including POS businesses, must file annual returns. Failure to comply can lead to penalties or deregistration of the business.
- Avoidance of Penalties
The CAC imposes fines for late or non-filing of annual returns. These penalties can accumulate over time, becoming a significant financial burden for small business owners.
- Maintaining Business Status
Filing annual returns keeps your business active in the CAC’s records. Non-compliance can result in your business being classified as inactive or deregistered.
- Building Credibility
Regular filing enhances your business credibility, especially if you plan to expand or seek financing in the future. Lenders and investors often check for compliance with regulatory requirements before approving loans or partnerships.
- Business Growth Opportunities
Being compliant with annual returns may open doors for business opportunities, such as contracts or partnerships that require proof of legal and operational status.
When Are Annual Returns Due for POS Businesses?
The timeline for filing annual returns depends on the type of business entity:
Business Names: Annual returns must be filed not later than June 30th of every year after the first year of registration.
Limited Liability Companies: The filing must be done within 42 days after the company’s annual general meeting (AGM). However, CAC guidelines say that annual return of a limited liability company must be filed within 14 days after annual general meeting.
For POS operators who registered their business names, the deadline is usually June 30th, but it’s advisable to file early to avoid penalties.
Steps to File Annual Returns for a POS Business
Here’s a step-by-step guide to filing your annual returns:
- Gather Required Documents
CAC Registration Number (RC or BN number)
Business registration certificate
Financial records (for limited liability companies)
Valid identification of the business owner
- Visit the CAC Office or Website
You can file annual returns online via the CAC portal (https://www.post.cac.gov.ng).
- Complete the Annual Returns Form
For business names, fill out the Annual Returns Form BN-7.
For limited liability companies, complete the Form CAC 10.
- Pay the Required Fee
The filing fee varies depending on the type of business entity. Payment can be made online or at designated banks.
- Submit the Form and Payment Receipt
Submit the completed form along with proof of payment to the CAC. For online submissions, upload the documents directly to the portal.
- Obtain Confirmation
Once processed, the CAC will confirm that your annual returns have been successfully filed.
Please note that you cannot file annual return for your POS business by yourself. You will require the service of an accredited agent to do the filing. Our team is available to handle this for you.
Consequences of Not Filing Annual Returns
POS business owners who fail to file annual returns may face the following consequences:
- Accumulated Penalties
Non-filing attracts fines that increase yearly, which can become a significant financial burden.
- Risk of Deregistration
Persistent non-compliance may result in the CAC deregistering your business, making it illegal to operate.
- Legal Implications
Operating an unregistered or deregistered business can expose you to legal actions, including fines or imprisonment.
- Loss of Opportunities
Non-compliant businesses may struggle to secure loans, contracts, or partnerships that require proof of regulatory compliance.
Common Mistakes to Avoid When Filing Annual Returns
Missing Deadlines: Ensure you file on or before the due date to avoid penalties.
Incomplete Documentation: Double-check that all required documents are complete and accurate.
Incorrect Filing: Use the correct form based on your business entity type.
Relying on Unverified Agents: Always engage accredited agents
Tips for Simplifying the Filing Process
- Stay Organized
Keep all your business records and CAC documents in one place to make filing easier.
- Set Reminders
Use calendar reminders or alerts to ensure you file your returns on time. If you want to get updates for FREE so as to avoid penalties for late filing, SUBSCRIBE HERE
- Engage Professionals
Hiring experts like accredited CAC agents can simplify the process and ensure compliance.
- File Early
Avoid the last-minute rush by filing your returns early.
How We Can Help
Filing annual returns can be a daunting task, especially for small business owners who are new to the process. At CACRegistration.com, we specialize in helping POS business operators and other small businesses comply with CAC requirements.
Our services include:
Annual returns filing for business names, companies, and incorporated trustees
Retrieval of lost CAC certificates
Business name and company registration
Regulatory compliance guidance
Contact us today to ensure your POS business remains compliant and penalty-free!
Conclusion
Filing annual returns is a legal obligation for all registered businesses in Nigeria, including POS operators. It not only ensures compliance but also helps maintain your business’s credibility and operational status. Ignorance of this requirement can lead to severe penalties and missed opportunities.
By following the steps outlined in this guide or engaging professional assistance, you can file your annual returns effortlessly and focus on growing your business. Stay compliant, avoid penalties, and build a sustainable POS business.
Take the first step toward compliance today – contact us at CACannualreturns.com to handle your annual returns and all CAC-related needs.
FAQs on POS Business in Nigeria
- What is a POS Business?
A Point of Sale (POS) business involves offering financial services such as cash withdrawals, deposits, funds transfers, and bill payments using POS terminals. It bridges the gap between traditional banks and customers, especially in underserved areas.
- How Do I Start a POS Business in Nigeria?
To start a POS business, follow these steps:
Register your business with the Corporate Affairs Commission (CAC).
Obtain a POS machine from a bank or licensed provider.
Open a business account.
Meet the provider’s requirements, such as a valid ID and a guarantor.
Set up a strategic location with good customer traffic.
- Do I Need to Register My POS Business with CAC?
Yes, registering your POS business with the Corporate Affairs Commission (CAC) is essential. It ensures legal recognition and compliance with Nigerian laws.
- What Are the Benefits of Registering My POS Business?
Legal recognition and credibility
Eligibility for loans and business grants
Access to corporate bank accounts
Ability to scale operations and attract partners
- What Documents Are Required to Register a POS Business?
For a business name registration, you’ll need:
Proposed business name
Owner’s name and details
Valid means of identification
Passport photograph
Application fee
For a limited liability company, additional documents like Memorandum and Articles of Association are required.
- What Services Can I Offer as a POS Operator?
Cash withdrawals and deposits
Funds transfers
Airtime top-ups
Utility bill payments (e.g., electricity, water, cable TV)
Account balance inquiries
- How Do I Obtain a POS Machine?
You can get a POS machine by applying to:
Banks like Access Bank, First Bank, Zenith Bank, etc.
Fintech companies like OPay, Moniepoint, or Paga.
Requirements often include:
Business registration certificate
Business bank account
Valid identification
Guarantor details
- How Much Does It Cost to Start a POS Business?
The startup cost for a POS business varies depending on location and equipment provider. On average, you may need between ₦50,000 and ₦150,000, covering the POS machine, business registration, and startup capital.
- What Are the Legal Requirements for Running a POS Business?
Business registration with CAC
Filing annual returns (after registration)
Compliance with the Central Bank of Nigeria (CBN) guidelines
- Do POS Businesses Pay Taxes in Nigeria?
Yes, all registered businesses, including POS businesses, are required to pay taxes. Taxes may include:
Personal Income Tax (for sole proprietors)
Company Income Tax (for limited liability companies)
Value Added Tax (VAT) if applicable
- What Are the Challenges of Running a POS Business?
Network downtime or connectivity issues
High competition in urban areas
Fraud risks from customers or agents
Dependency on power supply for operations
- How Can I Protect My POS Business from Fraud?
Verify customer identity before completing transactions.
Avoid large transactions for new customers.
Regularly reconcile daily transactions.
Use strong passwords for POS machines and online accounts.
- Do POS Operators Need to File Annual Returns?
Yes, POS operators with registered businesses are required to file annual returns with the Corporate Affairs Commission (CAC) to maintain compliance and avoid penalties.
- What Happens If I Don’t File Annual Returns?
Non-filing of annual returns can lead to:
Accumulated fines
Classification of your business as inactive
Potential deregistration by the CAC
- How Can I Expand My POS Business?
Offer additional services such as bill payments and airtime sales.
Set up multiple POS terminals in high-traffic locations.
Build strong relationships with banks and providers for better service support.
- Is It Possible to Operate a POS Business Without Registration?
Operating without registration is illegal and can result in penalties. Registering with CAC gives your business legal recognition and credibility.
- How Can I Promote My POS Business?
Use banners and signboards for visibility.
Offer competitive transaction fees.
Provide excellent customer service.
Leverage social media and word-of-mouth referrals.
- Can I Run a POS Business Alongside Other Businesses?
Yes, a POS business can complement other businesses such as retail shops, supermarkets, and pharmacies, enhancing income streams.
- What Is the Profit Margin for a POS Business?
The profit margin depends on transaction volume and fees. On average, POS operators earn ₦100 – ₦300 per transaction, which can accumulate to significant monthly earnings in busy locations.
- How Can I Ensure the Success of My POS Business?
Choose a strategic location with high customer traffic.
Build trust with your customers.
Maintain reliable service by ensuring good network connectivity.
Keep accurate records and manage your finances effectively.
This FAQ is designed to address common questions and help POS operators understand the legal, financial, and operational aspects of running their business in Nigeria. If you need assistance with CAC registration, annual returns filing, or other regulatory requirements, visit us at CACAnnualreturns.com for expert support.
Adebayo Oluwole is a seasoned chartered accountant and a member of Chartered Institute of Taxation of Nigeria with over twenty years of experience. His expertise cuts across accounting, auditing and taxation. He has helped hundreds of individuals translate their dreams into reality by offering them pre and post registration services. His focus is to help SMEs grow in the marketplace.