Hello , How is the week coming?

Welcome to today's conversation.

In today's email, i will be addressing an important question that bothers the minds of many.

And that is...

Why should i pay annual returns even when my company is not making any profit Yet?

Well, Annual returns is not about profit or loss.

which means that its payment has little or nothing to do with whether your business makes a profit or not.

This is because Annual Returns is not like the tax you pay to the government where you can state whether you have started business or started making profits or not.

Annual returns is an obligatory and relatively small fee that you pay to the Corporate Affairs Commission (CAC) once every year.

this is why has to be paid even when you haven't started the business.

.

The CAC requires businesses and non business organizations registered with it file these returns.

This payment is more like a renewal fee with which you make CAC to know that you are still an active organization so that your company is not delist from the database of registered Companies.

You are expected to file your returns at different times after commencement of business depending on the nature of the company.

For business names and Incorporated Trustees, your annual returns is due after six months of registration.

For Limited liability Companies, your annual returns is due one year after incorporation.

So , there you have it for today.

Did you find this information help?

I will like to read from you!

To your #LegalSense

Barinaada.

P.S. Let me know how you want us to help your business.