What Does Annual Return Mean?
In essence, an annual return serves as a concise overview of fundamental information pertaining to a company. Specifically, an annual return encompasses the subsequent details:
- Registered office address
- Business office address
- Branch office address (if applicable)
- Primary business activities
- Total authorized registered capital
- Overall paid-up capital
- Recorded charges with SSM (signifying pledged company assets)
- Company directors
- Appointed corporate secretary
- Shareholders
Why is Annual Return Submission Necessary?
The submission of a company’s annual returns is obligatory and constitutes a paramount legal prerequisite outlined by the SSM.
When Should Annual Returns be Submitted?
In line with the updated Company Act of 2016, in effect since January 2017, companies are obligated to submit their annual returns no later than 30 days subsequent to the anniversary of their incorporation date. However, companies incorporated in January 2017 are exempt from presenting the Annual Return in 2017 due to the delayed implementation of the Companies Act 2016. Consequently, these companies will fulfill their initial Annual Return submission according to the new Act only in 2018.
Are There Consequences for Failing to Lodge an Annual Return?
Given that the submission of the Annual Return is a paramount legal obligation, neglecting to comply with it constitutes an offense. In the event of conviction, both the company and its directors will be subjected to penalties as stipulated in sections 165 and 169 of the Companies Act 1965.