Understanding Company/Business Annual Returns

Annual Returns in South Africa
Annual Returns in South Africa, image: showme.co.za
Annual Returns in South Africa
Annual Returns in South Africa, image: showme.co.za

Registering a business comes with a lot of responsibilities, some of which are filing annual returns as well as paying annual fees. If you have registered a business and fail to file annual returns with CIPC (Companies and Intellectual Properties Commission), they will assume the business is inactive and they will start a removing/deregistration process of your entity from active businesses.

[ht_message mstyle=”success” title=”” show_icon=”true” id=”” class=”” style=”” ]All registered companies are required by law; this includes external companies, to file their annual returns with CIPC.[/ht_message]

What is the purpose of filing Annual Returns?

The main purpose of filing annual returns is to ensure that the company or close corporation is still trading, or rather in business or will it be in business in the near future.

You can consider annual returns as the renewal of the business’ registration. You can file your annual returns electronically via the CIPC Annual Return Website annualreturns.cipc.co.za or CIPC Self Service Terminal.

When can a company or close corporation file annual returns?

It is expected for companies and close corporations to file their annual returns; however, it differs for companies and close corporations. Even though your business was not active, it is expected for the company to file with 30 business days starting from the day after its date of registration.  Whereas Close corporations must file starting from the first day of the month it was registered up until the month thereafter whether it was active or not. If a Close Corporation files after such a period, an additional penalty fee will be applicable.

What is the difference between annual returns and tax returns with SARS?

Annual Returns – Are filed by CIPC, and is the most recent information about the company, and serves as a ‘renewal’ of the company. If you don’t file your annual returns your entity will be deregistered.

Tax Returns – Are filed by SARS, and are merely taxable income of the company business or close corporation – this is done to determine the company or close corporation’s tax liability to the State.

Will I ever be noticed or reminded to file my annual returns?

Yes, when you register your business (Company or close corporation) – You provide Directors’ contact details for companies and details for members of a close corporation, and thus CIPC will provide email/SMS reminders to the details provided when registering, hence it is important to ensure that you provide the correct details.  Dial *120*2472# to find out the outstanding annual return years and fees payable for annual returns or visit annualreturns.cipc.co.za

For more information visit CIPC

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