On 31st of July 2023, the Corporate Affairs Commission issued a public notice informing the public that the Corporate Affairs Commission (CAC) has commenced the process of striking off companies that have not complied with the provisions of the Companies and Allied Matters Act 2020 on filing annual returns. The names of the companies to be struck off have been published on the Commission’s website, and companies that fail to comply by filing their annual returns within 90 days of publication on the Commission’s website shall be struck off from the Register.
It is a mandatory requirement under the Companies and Allied Matters Act 2020 for business names, companies, limited partnerships, limited liability partnerships, and incorporated trustees to file annual returns.3 The successful completion of the registration procedure of any of these entities does not mark the end of the activities required by law to be undertaken.
Therefore, the management of various business organizations to understand the importance of filing annual returns, the timeline, and the implications of failing to comply with the provisions of the law with respect to filing annual returns. This article delves into the underlying reasons that make filing annual returns obligatory and why it should never be regarded as an optional chore for businesses.
We will explore the implications of non-compliance, shed light on the multifaceted advantages of annual return submissions, and discuss how this seemingly mundane task shapes the corporate ecosystem at large.