Annual Returns

It is very common to find that most registered companies do not pay their annual returns. The only time you hear a client talking about annual returns is probably when he wants to apply for a contract or about to make a business deal which requires an updated annual returns filing. Annual returns however is compulsory and if a company fails to pay it as at when due, it is charged an additional sum as penalty. Aside the fact tha payment of annual returns is compulsory, it also helps the reputation of a company because any company that wants to do business with your company and performs a search, part of the things it will check for is when last you paid your annual returns. Furthermore, to carry out any post incorporation filing for your company like change of directors, change of secretary, increase in share capital etc, one of the basic requirements is that the annual returns must be up to date. It is non negotiable. Requirements for Filing annual returns, Section 370- 377 CAMA. A) Duly completed annual return form. B) Audited financial statement signed by two directors and duly certified by a charterred accountant where necessary. C) Evidence of payment of FRC annual dues. D) payment of the annual return fees. Note : Annual returns shall be filed with the commission immediately after 42 days of the holding of the annual general meeting of the company for the year. All newly incorporated limited companies are entitled to a grace period of 18 months from the date of incorporation before they start paying annual returns to the commission.