In the previous post we discussed the meaning of Business Entity Report to its fullest. Click here to see “What is a Business entity report?”
Nigeria Business entity report
The Nigeria Business entity report is required, whether you are running an enterprise, Limited liability Company, or incorporated trustee, you are required to file annual returns every year with the Corporate Affairs Commission (CAC).
The law requires every company or registered corporate entity to file returns annually in the prescribed form provided not later than 18 months after incorporation (i.e after registration with the CAC in Nigeria).
The essence of this exercise is to keep the records of the company up to date and to ensure that the company is a going concern i.e. not to be liquidated in a foreseeable future time.
Changes in the company’s status such as address, share capital, directors, auditor etc. within the year in review as well as the financial activities of the company are some of the information contained in the annual returns form.
It is compulsory to note that Annual return is also required to be filed to the Relevant Tax Authority (RTA).
Significance of Nigeria Business Report
The annual must be filed every year to the Relevant Tax Authority (RTA), and it is expected to contain the following information:
- Audited financial statement
- Tax computation
- Computation of Capital Allowance
- Schedule of assets, debtors and creditors
- Declaration that the information supplied is true and it must be signed by either the company’s secretary or the director
- Completed self-assessment form
Read also “What is a Business entity report?”
According to the law, a new company is expected to file a return to the RTA within 18 (eighteen) months of commencement or 6 (six) months after the first account is prepared whichever comes first. While existing business should file return within 6 (six) months after his financial year end.
Failure to file a return or filing a return lately entitles the tax payer to a penalty of ₦25,000 for the first month and ₦5,000 for each of the subsequent months.
Procedures for filing annual returns to the CAC
- Completion of annual returns form [CAC 10]
- Payment of prescribed fee for filing; based on category of entity (Filing of annual return for Private company other than a small company, ₦3,000.00. and Filing of annual return for public company, ₦5,000.00)
- Provision of statement of affairs if company is yet to commence business or audited financial statement signed by a chartered accountant and two directors of the company. (Not required for an enterprise).
- An acknowledgement will be issued by the CAC after filing and processing.
Read also “What is a Business entity report?”
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