Registering a company with the Companies and Intellectual Property Commission (CIPC) is only the start. To stay in good standing, every company and close corporation must file an annual return each year, even if it has not traded.
When it is due
The annual return falls due each year on the anniversary of the date your company was incorporated, and must be filed within 30 business days of that date. The fee depends on the type of entity and its turnover, and increases if the return is filed late.
What it includes
- Confirmation of the company's details, such as directors and registered office.
- Turnover information, which determines the fee.
- Depending on the company, financial statements or a financial accountability supplement.
- Beneficial ownership information, which companies are now required to keep up to date with CIPC.
What happens if you miss it
If annual returns are not filed, CIPC can begin the process of deregistering the company. A deregistered company loses its legal standing, which can cause serious problems: bank accounts can be frozen, contracts become difficult to enforce and assets may be affected. Restoring a deregistered company is possible, but it takes time and costs considerably more than filing on time.
Staying compliant
- Note your incorporation anniversary in your calendar, with a reminder a few weeks before.
- Keep your director and contact details up to date with CIPC, so notices reach you.
- Check your company's status on the CIPC website if you are unsure whether returns are up to date.
An annual return takes little time when it is done on schedule. The cost of neglecting it is far higher.
If your company has fallen behind on its returns, it is best to deal with it quickly, before the deregistration process goes any further.
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