Reactivating a corporate entity that has been struck out by the Corporate Affairs Commission (CAC) can seem daunting, but it is a manageable process if you understand the requirements and associated costs.
This guide provides a comprehensive overview of why Businesses are struck out, the steps for reactivation, and the costs involved.
Why Corporate entities Get Struck Out
The primary reason for a corporate entity to be designated as “struck out” by the CAC is due to non-payment of annual returns, which is a statutory requirement for all business and Non-Business ventures, including Business Names, Limited Liability Companies, and Incorporated Trusteeships.
Non-compliance can lead to a corporate entity being marked as “INACTIVE” and eventually “STRUCK OUT” if the inactivity persists.
Understanding the Struck Out Status
When a corporate entity is struck out, it is not entirely removed from the CAC’s records.
The company details remain accessible on the commission’s portal, both in the manual search and post-incorporation sections.
While the entity will not be marked as ACTIVE, its information is preserved, allowing for the possibility of reactivation.
Key Status Definitions:
- ACTIVE: Compliant with statutory requirements.
- INACTIVE: Delinquent in filing annual returns.
- STRUCK OUT: Persistent non-compliance leading to removal from the active registry but still searchable.
Steps to Reactivate a Struck Out Company
- Filing Outstanding Annual Returns
To initiate the reactivation process, all outstanding annual returns must be filed. Despite the struck out status, the entities details are still preserved in the post-incorporation portal, allowing for the filing of these returns.
Cost of Filing Annual Returns:
| Entity Type | Filing Fee | Penalty Fee | Total Cost |
| Business Name | ₦5,000 | ₦3,000 | ₦8,000 Per year |
| Limited Liability Company | ₦5,000 | ₦5,000 | ₦10,000 Per year |
| Incorporated Trusteeship | ₦10,000 | ₦5,000 | ₦15,000 per year |
- Obtaining Acknowledgment Letters
After filing the annual returns, the CAC will issue acknowledgment letters. These documents confirm that the filings have been received and processed.
- Contacting the Special Processing Unit (SPU)
Once the acknowledgment letters are obtained, the next step is to contact the Special Processing Unit (SPU) of the CAC. The SPU can assist in updating the company’s status from “STRUCK OUT” to “ACTIVE”. In some cases, this status update may occur automatically without further intervention.
Why Reactivating Your Corporate entity is Crucial
Reactivating your corporate entity is essential for several reasons:
- Legal Compliance: Ensures you are compliant with Nigerian corporate laws.
- Operational Continuity: Allows your Business to continue operations legally.
- Financial Opportunities: Enables access to financial services and opportunities, such as loans and grants.
- Reputation Management: Maintains your Businesses reputation and credibility.
Taking Action: A Call to Reactivate
Reactivating a struck out corporate entity may seem overwhelming, but with the right guidance and understanding, it is a straightforward process.
By taking prompt action to file outstanding returns and contact the CAC, you can restore your Business to active status, ensuring legal compliance and continued operations.
If your corporate entity has been struck out, don’t delay—begin the reactivation process today to secure your business’s future. For personalised assistance and to ensure a smooth reactivation process, consider consulting with a legal expert who specialises in corporate law.
Summary of Reactivation Costs
| Entity Type | Filing Fee | Penalty Fee | Total Cost |
| Business Name | ₦5,000 | ₦3,000 | ₦8,000 Per year |
| Limited Liability Company | ₦5,000 | ₦5,000 | ₦10,000 Per year |
| Incorporated Trusteeship | ₦10,000 | ₦5,000 | ₦15,000 Per year |
Ensure your Businesses longevity and compliance by addressing your annual returns and reactivating your status with the CAC.
Take the first step today and safeguard your business’s future.
