WHAT NEXT AFTER BUSINESS REGISTRATION? MANDATORY POST-INCORPORATION FILINGS
INTRODUCTION CAMA being the statute that governs the operations of businesses in Nigeria mandates that certain filings be made once business activities commence after the registration of the company, as well as the obtaining of licenses where needed. The following are some of the filings that must be made as far as your company is concerned: Annual Returns: For starters, annual returns are yearly statements evidencing the performance of the company for the year and its financial position. The essence of this is to enable the CAC to have an updated record of the company. Taxation: As far as Nigeria is concerned, there are different laws governing the payment of tax; while some of these taxes are industry-specific, others apply generally. Below are a few of the payable taxes in Nigeria. Company Income Tax: This tax is imposed and levied on every company by the government through the FIRS. The Companies Income Tax Act being the governing statute mandates the remittance of 30% of the profit of a company for the financial year where such a company has a turnover of more than N100m, 20% where the company has a turnover of N25m to N100m. Companies with less than N25m turnover are exempted. Capital Gains Tax: The Capital Gains Tax Act provides for the remittance of 10% of company gains realized upon the disposal of chargeable assets such as stocks, bonds, real estate etc. Petroleum Profit Tax: The Petroleum Profit Tax Act imposes this on companies in the petroleum sector, particularly those in the business of crude oil production. Companies involved in the marketing of petroleum amongst others are not necessarily taxed under the PPTA but the CITA. It is also important to note that companies subject to tax under PPTA are not liable to pay tax under CITA. The rate is 30%. Value Added Tax: The Value Added Tax Act mandates that 7.5% on supply of goods and services be remitted. Employee Compensation Scheme: Employers are required to remit 1% of employees’ salary to the Employee Compensation Fund in the event of negative occurrences in the course of employment. The Nigerian Social Insurance Trust Fund Board (NSITF) implements the fund. Ultimately, it is for the benefit of both the employer and the employees. Industrial Training Fund (ITF): Employers are required to contribute 1% of its annual payroll to the fund no later than the 1st April of every year. The funds are used for skills in management, technical and entrepreneurial development of the Nigerian economy. Nigerian Immigration Service: Companies with foreign employees are expected to file expatriate returns. It is a monthly report on how the company has utilized the expatriate quota approval granted to them by the Ministry of Interior. It would usually contain the nationality, arrival or exit, area of residence of the expatriate. Special Control Unit against Money Laundering (SCUML): DNFIs should register with SCUML. CONCLUSION It is mandatory that these filings be done as the laws that mandate it also provide for penalties and fines in cases of default, which may in turn affect the revenue of defaulting companies, thereby hampering the cash flow of the company. This goes on to disrupt the business activities of the company, taints the brand identity of the defaulting company, leads to the revocation or withdrawal of the license, permits or grants issued by the relevant authorities. For further insight you can see our series of articles on; WHAT NEXT AFTER BUSINESS REGISTRATION? What Next After Business Registration? Registering Your Trademark. What next after Business Registration? SCUML Registration. What next after Business Registration; Know your Industry Regulators. WHAT NEXT AFTER BUSINESS REGISTRATION? BASIC BUSINESS POLICIES.