Every year, registered companies must confirm their details with the Companies and Intellectual Property Commission (CIPC) by filing an annual return. It is one of the most commonly missed compliance tasks in South Africa, and one of the most damaging to miss.
What is an annual return?
It is a yearly filing that confirms your company is still active and that your details are correct. It is separate from your tax returns with SARS and from your financial statements. Companies generally file it within a set period after the anniversary of their registration, and the fee depends on your company's turnover category. Check the CIPC for the current rules and fees.
What happens if you do not file?
If a company repeatedly fails to file, the CIPC may start the process of deregistering it. Once a company is deregistered, it generally stops existing as a legal entity. Problems that follow include:
- You may not be able to open or keep a bank account, or sign contracts.
- You cannot bid for tenders or register as a supplier.
- Property and other assets can be affected.
- Your directors may face complications.
Beneficial ownership
Companies must also file information about the people who ultimately own or control them, known as beneficial ownership. Keep this up to date when ownership changes.
How to fix a company that has fallen behind
- Check your status on the CIPC system.
- File all outstanding returns and pay the fees.
- Update directors and addresses if they have changed.
- Apply for reinstatement if the company has already been deregistered.
Make it a habit
Put your filing date in your calendar every year, and tell your accountant or compliance provider about any changes to directors, shareholders or addresses. Staying in good standing is far cheaper than repairing a deregistered company.
This article is general information for South African small businesses and is not legal, tax or financial advice. Rules, fees and dates change, so confirm current requirements with the relevant authority or speak to us.