Filing Annual Returns: A Guide for Companies
Every company on the register, including overseas companies, must prepare and file an annual return. If you don’t file an annual return by the due date, the Registrar of Companies can remove your company from the register.
This annual return needs to be filed within sixty days after the AGM’s conclusion. The Annual Return and Extract of Annual Return are usually considered the same and used interchangeably; however, both are two different reporting documents.
You must deliver an annual return (Form NAR1), in respect of every financial year, to the Registrar for registration within 42 days after the company’s return date pursuant to section 662 of the Companies Ordinance.
Alternatively, you can engage the services of a registered filing agent to do this on behalf of the company. Below is a list of information that you are required to provide when filing the annual return:
- Company details: Confirm that the company type, registered office address, the particulars of the company officers, and details of registered charges are up to date.
Global Compliance: Across Countries
UK limited companies are required to undertake a range of annual filings, the main ones being the Confirmation Statement, annual accounts, and Corporation Tax returns.
In Nigeria, Section 370 – 378 of CAMA (2004) and Chapter 16 of the CAMA (2020) make it a statutory prerequisite for every company in Nigeria to file its annual returns every year. Only one-member companies are exempt.
Is GST annual return mandatory? The GST Council announced GST annual return not required for small businesses under Rs. 2 crore turnover for 2017-18 and 2018-19.
Understanding Annual Returns
The annual return is income percentage on invested capital. It details compounded return earned yearly. An annualized return calculates the average return over time. To get a mutual fund’s annualized return, calculate the total return and time. It shows the annual growth rate over the investment period.
Comparing investments requires understanding annual returns. Consistent returns mean lower risk while changing returns indicate higher risk.
Annual Reports: Their Impact and Creation
An annual report letter written by the company owner or director should be informative yet easy to read while promoting exciting developments. It includes photos, financial reports, and recognizes contributors. Successful reports engage investors and showcase the company.
The 10-K filing provides comprehensive financial data to help investors make decisions.
Professionals like accountants, writers, and artists create impressive annual reports for public companies, while smaller companies, LLCs, and nonprofits prepare their own. The report summarizes the nonprofit’s income, expenses, and thanks donors. It also helps appeal for more donations, staff, and volunteers.
The document communicates with shareholders and stakeholders about company operations and finances. It starts with a table of contents outlining key topics, then summarizes performance.