CAC To Generate N24.5bn From Registration Fees, Others
The Corporate Affairs Commission projects to rake in N24.5bn as internally generated revenue in the 2022 fiscal year.
The figure was contained in its 2022 budget proposal document submitted to the National Assembly for approval.
The sum of N24.5bn is N3.8bn higher than the commission’s projected IGR for 2021 of N20.7bn.
Some of the items with the highest projections in the commission’s 2022 budget are registration of charges with N7.8bn, filling of annual returns N4.2bn, incorporation fees N2.9bn, increase in share capital N2.8bn, business name registration N1.4bn and N1bn from limited liability fees.
The commission also intends to generate N966.2m from incorporations trustees’ registration, N238.5m from reservation of business names and N238.5m from charges for company information.
According to the CAC’s fees list, the statutory fee for registration of charges is N25,000 or 0.35 per cent of the amount secured by the charge, whichever is higher, for both private and public firms.
Private firms are charged N5,000 as annual returns while public companies are pay N10,000.
For registration of increase in issued share capital up to N500m, CAC charges N5,000 and N10,000 for every N1m share capital for private and public firms respectively.
The commission charges private firms N7,500 and public firms N15,000 for every N1m share capital where the increase in issued share capital is above N500m.
The budget proposal document also revealed that penalties would fetch the commission N98.5m in 2022.
CAC budgets to generate N92.6m from defaulting companies, N5m from penalties associated with the registration of business names and N82,000 from defaulting incorporated trustees.
Findings show that penalties levied by the CAC range between N150 and N1,000 for daily defaults, and between N5,000 to N25,000 for one-off violations.
The primary function of the CAC, according to Section 7 of the Companies and Allied Matters Act, is to administer the Act, including the regulation and supervision of the formation, incorporation, management and winding up of companies.