In a bid to accommodate companies grappling with technical challenges on the Company Registration Portal (CRP) and to alleviate pressure on the Micro, Small, and Medium Scale Enterprises (MSME) sector, the Corporate Affairs Commission (CAC) has decided to extend the deadline for annual returns submission.
The commission, in an official statement released on Thursday, December 28, 2023, announced a shift in the submission timeline from January 1, 2023, to a more lenient deadline of April 1, 2024.
The extension comes on the heels of a prior circular from the CAC, outlining plans to delist 91,843 companies by the end of December for failing to meet the initial submission deadline. These companies, initially facing potential penalties, will now benefit from a temporary suspension of penalties as they fall within the original deadline of January 1, 2023.
Recognizing the persistent issues encountered by businesses navigating the CRP, the CAC deemed it necessary to provide additional time to ensure a smoother compliance process. The technical glitches and hitches experienced by companies underscore the challenges associated with transitioning to online platforms for regulatory obligations.
The MSME sector, known for its distinct challenges, has been a focal point of consideration in the CAC’s decision-making process. The extension is a testament to the commission’s commitment to fostering a business-friendly regulatory environment and understanding the unique hurdles faced by smaller enterprises.
Key Developments:
1. Deadline Dynamics:
• Original Deadline: January 1, 2023
• Revised Deadline: April 1, 2024
2. Penalty Postponement:
• Companies within the January 1, 2023, deadline spared from immediate penalties.
3. Technical Woes Acknowledged:
• CRP glitches prompt the CAC to address the challenges faced by companies during the online submission process.
4. MSME Advocacy:
• Consideration of the MSME sector’s appeals and challenges in regulatory compliance.
5. Delisting Dilemma:
• Previous plans to delist 91,843 companies by December end are reevaluated, given the extended deadline.
6. Regulatory Relief:
• CAC’s decision reflects a balance between regulatory adherence and the evolving landscape of corporate compliance.
7. Business Impact:
• Companies, especially in the MSME sector, receive a lifeline with an extended window to fulfill their annual returns obligations.
The CAC’s measured approach, considering both technical realities and the nuanced challenges faced by businesses, positions this extension as a strategic move toward ensuring regulatory compliance without unduly burdening companies during a transitional phase. The commission’s acknowledgment of the need for flexibility demonstrates its commitment to facilitating a seamless regulatory experience for businesses across sectors.
