Don’t Forget Your CIPC Annual Returns!
Did you know that all companies and close corporations in South Africa are legally required to submit their Annual Returns to the Companies and Intellectual Property Commission (CIPC) every year? This isn’t just a suggestion; it’s a statutory obligation under the Companies and Close Corporations Acts.
What Happens if You Don’t File?
Ignoring this requirement can have serious consequences. If you fail to file your Annual Returns, CIPC may assume your company or close corporation is no longer active. This can lead to deregistration, which means your business will lose its legal standing and essentially cease to exist. You won’t be able to trade formally, and your juristic personality will be withdrawn.
Key things to remember:
-
CIPC will give your company 30 days from your annual return filing due date before declaring it non-compliant.
-
CIPC Annual Returns can only be filed electronically. There are no walk-in options.
How Much Do You Pay for CIPC Annual Returns?
The payment for your CIPC annual return isn’t a fixed amount you decide. Instead, it’s determined by your company’s turnover using CIPC’s Annual Return Payment Calculator.
Here’s a breakdown of the current fees:
-
Turnover Less than R1 million: R 100.00
-
Turnover Between R1 million and R10 million: R 450.00
-
Turnover Between R10 million and R25 million: R 2,000.00
-
Turnover Above R25 million: R 3,000.00
Financial Statements and Annual Returns
Private or personal liability companies that aren’t required to have their financial statements audited have a choice. They can voluntarily file their audited or reviewed statements along with their annual returns. If they choose not to file a full set of financial statements, they must submit a financial accountability supplement with their annual return.
Who Can File an Annual Return?
Due to the specific information required, an annual return must be filed by the company or close corporation itself, or by a duly authorized representative who has access to all the necessary details.
When to File Your Annual Returns
The filing period differs for companies and close corporations:
-
Companies: Must file within 30 business days starting the day after their registration date, regardless of whether they were active or not.
-
Close Corporations: Must file starting from the first day of the month they were registered up until the month thereafter, regardless of activity.
While you can file after these periods, an additional penalty fee will be applied.
CIPC Annual Returns vs. SARS Tax Returns: What’s the Difference?
It’s crucial to understand that CIPC Annual Returns are not the same as SARS Tax Returns.
-
An Annual Return provides a summary of key information about your company or close corporation and is filed with CIPC.
-
A Tax Return focuses on your company’s taxable income to determine its tax liability to the State and is filed with the South African Revenue Service (SARS).
Complying with one does not mean you’re compliant with the other. These are two distinct processes, governed by different laws and administered by separate government departments.
Need Help?
Remember, we’re here to assist you with both your CIPC Annual Returns and your SARS Tax Returns.
[TALK TO US – CLICK HERE]