Lagos, Nigeria’s commercial hub, has the highest number of registered businesses in the country. Filing annual returns with the Corporate Affairs Commission (CAC) is a legal requirement for all registered companies and business names. Failure to comply can result in penalties or even business deregistration.
This article provides a comprehensive, step-by-step guide on how Lagos-based businesses can file their annual returns through an accredited CAC agent, the costs involved, penalties for late filing, and how to avoid compliance issues.
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Overview of Business Compliance in Lagos
Lagos is home to thousands of small, medium, and large-scale businesses across various industries, including finance, real estate, technology, and manufacturing. Given the high volume of registered businesses in Lagos, compliance with CAC regulations is critical to maintaining good corporate standing and avoiding legal issues.
Many businesses mistakenly believe that filing tax returns with the Federal Inland Revenue Service (FIRS) is the same as filing CAC annual returns. However, they are separate requirements. Annual returns confirm a business’s continued existence and update CAC records, while tax returns deal with revenue and taxation.
What Are Annual Returns?
Annual returns are mandatory yearly filings submitted to the CAC by all registered businesses and companies in Nigeria. They serve as official confirmation that a business is still operational.
Key points to note:
Annual returns must be filed every year after the first 18 months of business registration.
Failure to file can lead to penalties and eventual business deregistration.
Filing must be done through an accredited CAC agent, as business owners cannot file directly.
Why Is Filing Annual Returns Important in Lagos?
Legal Compliance: Lagos-based businesses must comply with CAC laws to remain operational.
Avoidance of Penalties: Late filing attracts financial penalties, and prolonged non-compliance can lead to deregistration.
Business Credibility: Investors, banks, and potential partners check CAC records before engaging with a company.
Uninterrupted Business Operations: A company with overdue filings may face challenges updating its records or obtaining official CAC documents.
CAC Filing Process for Businesses in Lagos
Since only accredited CAC agents can file annual returns, business owners in Lagos must follow these steps:
- Engage a CAC-Accredited Agent
Choose a reputable agent (such as cacannualreturns.com) to handle the filing.
- Provide Necessary Information and Documents
CAC Registration Number
Business Name or Company Name
Updated company details
Financial statements (for limited liability companies)
- Payment of Filing Fees and Charges
Business Name: ₦3,000 (late filing attracts ₦5,000 penalty).
Limited Liability Company: ₦5,000 or more, depending on share capital (late filing penalty: ₦5,000 per year of default).
Agency Fee: ₦5,000 (for processing and filing via an accredited agent).
- Submission & Confirmation
The agent submits the filing to CAC.
CAC updates the business’s status and provides confirmation.
Common Challenges in Filing Annual Returns in Lagos
High Volume of Filings: Lagos has a high number of businesses, leading to delays.
Rejection Due to Incorrect Details: Errors in the business name, RC number, or missing documents can result in rejected filings.
Unawareness of the Requirement: Many business owners are unaware of the need to file, assuming tax filings are sufficient.
Network and Portal Issues: CAC’s online portal sometimes experiences downtime, affecting processing times.
How to Avoid Penalties and Late Fees
File on Time: Avoid penalties by filing annually after the first 18 months of registration.
Engage a Trusted CAC Agent: Using a reliable agent ensures smooth filing and avoids errors.
Keep Business Information Updated: Ensure CAC records reflect accurate company details.
Where to Get Help for Filing Annual Returns in Lagos
CAC Lagos Office: Located at 17, Aje Street, Yaba, Lagos.
Accredited CAC Agents: Business owners should use professionals to ensure smooth processing.
Online Assistance: Visit cacannualreturns.com for seamless filing services.
FAQs on Filing Annual Returns in Lagos
Q: Can I file my annual returns myself?
No, only accredited CAC agents are authorized to file annual returns.
Q: What happens if I don’t file my annual returns?
Late filing attracts penalties, and prolonged default can lead to business deregistration.
Q: How much does it cost to file annual returns in Lagos?
Business Name: ₦3,000 (late filing penalty: ₦5,000)
Limited Liability Company: ₦5,000+ (late filing penalty: ₦5,000 per year of default)
CAC Agent Processing Fee: ₦5,000
Q: Can I still file if I have missed multiple years?
Yes, but you will have to pay penalties for each year missed before you can update your records.
Conclusion
Filing annual returns is not just a legal requirement—it is essential for maintaining a company’s credibility and avoiding penalties. Businesses in Lagos should ensure timely compliance by using an accredited CAC agent.
Need assistance? Contact us at cacannualreturns.com today for professional help in filing your annual returns quickly and correctly.
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.