A business name in Nigeria, as defined under CAMA 2020, is the registration structure for sole proprietors and partnerships, distinct from incorporated companies. It lacks a separate legal personality, meaning owners are personally liable for business obligations.
Given its simplicity and affordability, it’s popular among SMEs, such as petty traders and artisans. However, like any registered entity, business names have compliance requirements, including filing annual returns with the Corporate Affairs Commission (CAC) to keep their registration active and details updated.
The importance of this filing stems from CAMA 2020’s emphasis on transparency and ease of doing business, enacted on August 7, 2020, to modernize Nigeria’s business environment. Annual returns ensure the CAC has current information, preventing fraud and maintaining a reliable business registry.
How to File CAC Annual Returns for Your Business Name in Nigeria (Step-by-Step Guide)
This guide breaks down why it’s important, what’s legally required, the benefits, and how to file step by step, with a nod to how SplashDict can simplify the process.
What Are CAC Annual Returns?
Annual Returns are mandatory filings submitted to the Corporate Affairs Commission (CAC) by all registered business names in Nigeria. Whether your business is active or dormant, you are required to file annual returns every year; failure to do so may lead to your business being marked "inactive" or even delisted.
One important thing to note is that this filing is not to disclose the profits your business has earned in the year in review, and it is not a financial document. What it is, is a yearly report from your registered business to provide the CAC with updated information about your company’s activities, structure and financial status.
It's crucial to distinguish that filing annual returns is separate from tax obligations handled by the Federal Inland Revenue Service (FIRS). While annual returns focus on corporate compliance, tax filings pertain to financial reporting and tax liabilities.
Notably, annual returns must be filed every year following the year of registration. The deadline for business names is June 30th annually. Timely filing prevents penalties and maintains the business's legal status, irrespective of its operational activity.
Why File Annual Returns for Your Business Name?
Under Section 587 of CAMA 2020, every firm, company, or individual operating under a registered business name must file annual returns by June 30 each year (except the year of registration). This filing provides the CAC with updated details about your business, including its operations and financial status from January 1 to December 31 of the previous year.
Here’s why filing annual returns is non-negotiable:
Maintain Legal Compliance: Keeps your business in good standing with the CAC, ensuring legal recognition.
Avoid Penalties: Failure to file incurs a ₦200 fine plus a ₦25 daily default fine (Section 587(3)).
Eligibility for Opportunities: Compliance is often required for contracts, tenders, grants, or bank loans.
Prevent Deregistration: Non-compliance risks your business being marked inactive or removed from the CAC registry (Section 578).
Build Credibility: Shows partners and customers your business is professional and up-to-date.
Who Needs to File Annual Returns?
As per Section 587, every registered business name; whether a sole proprietorship, partnership, or corporation; must file annual returns, even if the business is inactive. This includes:
Businesses registered under Part B of CAMA 2020.
Firms or individuals operating under a business name that differs from their true surnames (Section 573).
Businesses that have not formally ceased operations with the CAC.
Exception: The calendar year in which your business name is registered is exempt from filing.
How Much Does it Cost to File Annual Returns with CAC for a Business Name?
The cost to file annual returns with the Corporate Affairs Commission (CAC) for a business name is ₦3,000. If the filing is late, a penalty of ₦5,000 will be applied.
Here's a breakdown:
- Filing Fee: ₦3,000
- Late Filing Penalty: ₦5,000 per year
Therefore, if you file your annual returns on time, your total cost will be ₦3,000. If you file late, you will pay ₦3,000 for the filing fee plus ₦5,000 for the penalty, for a total of ₦8,000.
Legal Requirements for Filing Annual Returns of Business Name
Section 822 of CAMA 2020 mandates every registered business name to file an annual return with the CAC. This involves completing Form CAC/BN 6, which requires:
Business Identification: Business name and registration number.
Operational Address: Principal place of business and any branches.
Nature of Business: Description of business activities, noting any changes.
Ownership Details: Information on proprietors or partners, including any modifications.
Operational Status Declaration: Confirmation of the business's operational status.
Financial Summary: Annual turnover and net assets for the reporting period.
Unlike incorporated companies, business names are not required to submit detailed financial statements, simplifying the compliance process.
Consequences of Non-Compliance
Failure to file annual returns can lead to:
Financial Penalties: Accumulation of fines for each year of default.
Risk of Deregistration: Potential removal of the business name from the CAC register, necessitating re-registration.
Operational Limitations: Inability to enforce contracts or access certain legal remedies.
Reputational Damage: Perception of unprofessionalism, potentially deterring clients and partners.
Step-by-Step Process for Filing Annual Returns
Filing annual returns for a business name involves the following steps:
Step 1: Confirm Your Business Status
- Visit the CAC Public Search Portal
- Type in your business name to check if it is currently "Active" or "Inactive"
Step 2: Prepare Required Information
You’ll need:
- CAC Registration Number (BNxxxxxx)
- Business Name & Address
- Nature of Business
- Details of Proprietors (Name, Address, Date of Birth)
- Financial activity summary (even if zero)
Step 3: Log in to the CAC Company Registration Portal (CRP)
- https://post.cac.gov.ng
- Use your registered email and password
Step 4: Initiate the Annual Returns Process
- Select "Annual Returns for Business Name" from the post-incorporation options
- Fill the form with accurate details
Step 5: Make Payment
- Pay the official CAC filing fee via remita
- Keep your payment receipt and acknowledgment
- Upload supporting documents if needed
Step 6: Wait for CAC Acknowledgment
Processing takes 1–7 day(s).
Receive a CAC Acknowledgment Letter confirming your filing.
- If previously inactive, your business will return to Active (Green).
Fast & Stress-Free Filing with SplashDict
Filing your annual returns doesn’t have to be stressful or time-consuming. At SplashDict, our CAC-accredited agents and licensed Chartered Secretaries take the burden off your shoulders by handling the entire process with precision and professionalism.
Whether you're filing for the current year or need to resolve several years of default, we ensure all filings are properly prepared, submitted, and acknowledged by the Corporate Affairs Commission (CAC).
Let SplashDict take care of your filings while you focus on growing your business.
File Annual Returns for Business Names in Nigeria
Here’s how SplashDict's CAC-accredited experts assist you:
