Filing Your Business’s Annual Returns: What You Need To Know
An annual return is a legal document that specifies essential information regarding your business’s activities, its financial position and the state of its incorporation. Every business in the country, be it private or federal, is obligated to follow certain rules and regulations and filing an annual return is one of them.
Submitting your annual returns accurately also helps investors, consumers and other financial institutions to evaluate your business’s standing and make decisions regarding your company. In Alberta, you need to file your annual returns one month before the anniversary of your incorporation. Failure to do so can have serious consequences for your company that may even result in its dissolution.
Here are certain steps that will guide you on how to file your annual returns:
1) Collect Information from Shareholders
This is the first towards filing an annual return. Since shareholders are an important part of the company, gathering their information is essential to complete your annual returns. Collect the following information from the top 5 shareholders of your company:
- Shareholder’s name
- Shareholder’s address
- His/her percentages of issued shares
2) File the Annual Returns
File your returns within the given time period as specified under provincial or federal laws, whichever are applicable to your business. Fill in all the details about your company, its address, its shareholdings and information regarding your Board of Directors. Consult a business lawyer to understand other legislative requirements of Form 3022 of Annual Return and file your company’s returns accordingly.
3) Submit it to Alberta Service Provider
Once you have filed the returns, take your forms to a registry agent or an authorised Alberta Service Provider. If the information included in the forms meets the requirement specified by the legislations, the service provider will enlist your returns in their Corporate Registry. Don’t forget to carry the following documents with you when you go for the form submission:
- Any valid ID proof
- Fee payment of your form
Many businesses these days prefer to file their returns online. You can do so at Government of Canada’s official website if your business is registered as a federal entity.
4) Pay the Filing Fee
In order to complete the filing process, determine and pay the filing fee. The filing fee differs for different types of businesses. In Alberta, the usual amount charged for filing an annual return is $20 for online filing and $40 for paper filing. You can use different modes of payment such as credit card, debit card or direct debit to complete the payment process.
Since every business in the country is a subject to Canadian Business Corporations Act, follow these tips to make your filing process easier. If you have any queries regarding the process of submitting your annual returns, consult our law firm today.