Companies urged to file annual returns to avoid deregistration

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The CIPC has urged all companies and close corporations to file their annual returns and hereby reminds entities to comply with their legal obligations to file their annual return to avoid deregistration.

All companies including external companies such as non-profit, private, public companies and close corporations are required by law (Companies Act 71. of 2008) to lodge their Annual Returns with CIPC within a certain period of time every year.

CIPC’s Senior Manager Charmaine Motloung says the CIPC has seen a dramatic growth in the volume of companies and close corporation not filing annual returns and hereby reminds entities of their duty to file annual returns and the legal consequence for non-compliance.

“Failure to submit annual returns will result in the commission assuming that the company and/or close corporation is not doing business or is not intending on doing business in the foreseeable future, and will therefore result in the company/close corporation being deregistered.

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“Companies have thirty business days from the date after its anniversary date and close corporations from the beginning of its anniversary month to the end of the month thereafter to file.

“Therefore, these companies and close corporations are already in non-compliance with their legal obligation to file annual returns,” she explained.

Motloung further added that companies and close corporations that are non-compliant with annual returns will experience a penalty fee to their standard filing fee and if non-compliance continues will be deregistered.

“Once deregistered, the company or close corporation ceases to exist (its legal personality is withdrawn) and the directors or members may be held personally liable for the debit of the company or close corporation,” Motloung concluded.

CIPC has provided a step-by-step guide on how to file for annual returns.