I have seen most people confuse the KRA Income tax returns and the Annual Returns filed with the registrar of companies.
In this article, we gonna discuss the annual returns filed with the registrar of companies to help you distinguish between the two.
Most people are not aware of the annual returns which are very important since there are a number of activities you cannot fulfil without filing annual returns eg. company dissolution
So What are annual returns?
Its a statutory document that every registered company in Kenya has to file with the registrar of companies to show the “current” status of the company. Annual returns highlight the structure of the company, the shareholding, the division of shares, the Nominal capital, the names and addresses of the directors and shareholders in a company. The current registered office of the company and details of the company secretary.
After incorporation, the first annual return filing should happens at exactly One year and 6 months, after which the filing should be filed on an annual basis.
Remember you risk your company being struck of the register of companies when you continuously fail to file the annual returns.