This is a question we get a lot. The answer is a resounding YES. It is compulsory to file your company or close corporation’s returns with CIPC annually.
The new Companies Act has implemented stricter requirements concerning accountability and transparency. One of these requirements is that annual returns must be filed with the Companies and Intellectual Properties Commission (CIPC).
The purpose of filing annual returns with CIPC
The purpose for filing annual returns is to confirm that the company or close corporation is still in business/trading or will be in the near future. The annual return can be seen as a type of annual “renewal” of the company or close corporation registration.
But I filed my annual tax returns with SARS…?
A clear distinction must be made between an annual return to CIPC and an annual tax return to SARS. An annual return to CIPC is an updated summary of the financial and contact information regarding the company or close corporation and is filed with CIPC while a tax return focuses on the financial information of a company or close corporation for a specific year in order to determine its tax liability to the government and is filed with SARS.
Compliance with the one does not mean that there is compliance with the other. They are two different processes, administered in terms of different legislation by two different government departments.
When must the Annual Return be filed?
Companies are required to file annual returns within 30 business days after the anniversary date of its incorporation. Close Corporations are required to file annual returns within the anniversary month of its incorporation up until the month thereafter. CIPC imposes penalties for filing the returns late.
All active directors and members will receive an email / sms one month prior to the due date. It is therefore imperative that all contact details are correct as CIPC will not waive penalties for filing returns late.
If TLOK files these returns on your behalf, please ensure that we have your correct information when filing the return so that they can be updated if need be.
What fees payable to CIPC?
The prescribed fees for annual returns are legislated and therefore cannot be waived or discounted in any way. CIPC is not able to enter into payment terms for the payment of annual returns. The fees are calculated based on the annual turnover of the company and payment must be made to CIPC when the return is filed. These returns are filed electronically with CIPC.
What will happen if the Annual Returns are not filed?
If the annual returns are not filed within the prescribed time, CIPC will assume that the entity is inactive and will start with the deregistration process, which will result in the juristic personality being revoked and the company or close corporation will cease to exist.
How to file Annual Returns
TLOK Accountants assists companies and close corporations with the submission of Annual Returns to CIPC.
We will ensure that your returns are filed on time every time.
TLOK also offers the following Statutory Services:
- Name reservations
- Private company registrations
- Company director amendments
- Close corporation’s member amendments
- Annual returns
- Auditor amendments
- Company and Close Corporation address changes
- Company and Close corporation financial year end changes
- Authorised company share changes.
- Full Disclosure Certificates & Memorandum of Incorporation documents
- Trademark Applications