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Filling of annual returns hold a crucial role in maintaining transparency and compliance within the corporate sector. As contained in Section 417 of CAMA 2020 of the Company and Allied Matters Act (CAMA), every business name, company, or incorporated trustee is mandated to submit annual returns to the Corporate Affairs Commission (CAC) at least once a year except a company with only one member. The primary objective of this statutory requirement is to update the CAC about the company’s status that it is still active,
still in business, and in full operation.

Contrary to popular misconceptions, annual returns are not the profit a company made in a year, it is not a financial document, and it is not a tax. Instead, they represent a legal obligation to inform the CAC of the company’s operational status and provide a means to keep abreast of its activities. By submitting these returns, companies provide essential information about the company, its structure, directors, shareholders, and registered address, among other details, thereby fostering transparency and accountability

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