Upon incorporating your Company, it becomes your responsibility to submit Annual Returns on the eCitizen Business Registration Platform each year on the Company’s anniversary. This process is crucial for demonstrating compliance status and capturing any changes that occurred during the year, such as corporate restructuring.

It’s essential to differentiate between the Business Registration Services (BRS) Annual Return and the Kenya Revenue Authority (KRA) Annual Return, as they serve distinct purposes. The BRS Annual Return requires comprehensive information about the Company, including details about directors, shareholders, Company address, nature of business, and more. Ensuring that all information is up-to-date is crucial, as failing to file the Annual Return on time incurs penalties. According to section 705(1) of the Companies’ Act, if a Company neglects to submit the Annual Return or submits one that does not comply with section 705(3), both the Company and any officer in default are subject to conviction for an offense, with each liable to a fine not exceeding two hundred thousand shillings.

Although Annual Returns are typically expected to be filed on an annual basis, some individuals may opt for Interim Annual returns when making changes within the Company, such as transferring shares or removing directors. Interim Annual returns indicate that the filing occurs at the time when these changes take place.

Submitting the Annual return with incorrect details can lead to complications, as some of your information on the eCitizen BRS platform may be updated based on the details provided in the annual return. For instance, if you state that your Company has 3000 shares but mistakenly omit one zero, filing it as 300 shares, this error can modify the information on your eCitizen records, potentially distorting the actual share count. Rectifying such mistakes can be highly inconvenient.

To ensure compliance, accuracy, and the submission of correct details, it is advisable to enlist the services of a professional Company Secretary. These individuals possess knowledge of legal requirements and understand the technical aspects involved in filing Annual Returns.