The Most Ignored CAC Rule

You've successfully registered your business, downloaded your certificate, and opened your corporate bank account. You're fully compliant, right? **Wrong.**

Thousands of Nigerian businesses are classified as "INACTIVE" on the CAC portal right now because they failed to do one thing: **File their Annual Returns.**

Here is everything you need to know about CAC Annual Returns in 2026.

What are Annual Returns?

Annual Returns are a mandatory yearly filing made to the Corporate Affairs Commission. It is simply a statement telling the government: *"My business is still alive, still operating at this address, and these are still the owners."*

**Important:** Annual Returns are NOT taxes. You pay taxes to FIRS (Federal Inland Revenue Service) or LIRS (State). Annual Returns are paid strictly to the CAC. You must do both.

When Are Annual Returns Due?

For Business Names (Enterprises/Ventures): You must file your annual return every year, not later than

For Limited Liability Companies (LLCs): You must file within

Grace Period: New businesses do not need to file Annual Returns in the year they were registered. Your first filing is due the *following* year.

How Much Does It Cost?

The government filing fees for Annual Returns are:

Business Names: ₦3,000 per year

Small LLCs: ₦5,000 per year

NGOs/Incorporated Trustees: ₦5,000 per year

*(Note: These are base government fees. Accredited agents will charge a processing fee to handle the filing for you).*

The Penalty for Not Filing

If you fail to file your Annual Returns by the deadline, the consequences are severe:

**Massive Late Fees:** The CAC charges a daily/yearly penalty for late filing. A Business Name that hasn't filed for 3 years will owe the base fee *plus* heavy penalties.

**"Inactive" Status:** Your business will be marked as **INACTIVE** on the public CAC search portal.

**Bank Account Freezes:** Nigerian banks routinely check the CAC portal. If your business is marked Inactive, your corporate bank account will be frozen until you update your status.

**Delisting:** The CAC periodically deletes (strikes off) companies that have not filed returns for 10 years. You lose the legal right to your business name.

How to File Your Annual Returns

Filing requires logging into the CAC portal, generating a REMITA code, filling out the annual return form, and uploading your statement of affairs.

**Need help?** If your business is currently marked as INACTIVE, the team at **CACnigeria.ng** can calculate your outstanding penalties, file your backlogged returns, and restore your business to ACTIVE status within 48 hours.

[Contact us for Annual Returns filing →](/contact)

CAC Annual Returns: What Every Nigerian Business Owner Must Know