When a business name or company’s status is shown as “INACTIVE” on the Corporate Affairs Commission (CAC) website, it typically indicates that the company has not met certain legal obligations or has failed to comply with the requirements set by the CAC. Here are some common reasons why a company’s status may be marked as “INACTIVE”:
Non-Filing of Annual Returns: One of the primary reasons for a company to be marked as inactive is the failure to submit annual returns to the CAC within the specified deadline. Annual returns include important documents and financial information that companies are required to provide to the CAC on an annual basis. Non-Payment of Annual Fees: Companies are also required to pay annual fees to the CAC. Failure to make these payments can result in the company being marked as inactive.
It’s important to note that an inactive status does not necessarily mean the company no longer exists or has been permanently dissolved. However, it does indicate that the company is not currently in good standing with the CAC. Therefore, the company will not be able to carry out post registration activities.
To rectify an inactive status, the company would typically need to take appropriate actions, such as filing overdue annual returns and paying outstanding fees.