Why Does Your Company or CC Pay Annual Return Fees to CIPC?

The Companies and Intellectual Property Commission (CIPC) requires Annual Returns from a Company or Closed Corporation which has nothing to do with SARS.

There is often confusion as to why Companies (profit and non-profit) and close corporations have to submit and pay annual return fees to the CIPC and “No”………it has nothing to do with SARS.

This is a separate fee payable to the CIPC annually on the anniversary date of the company or close corporation (the incorporation date).

The annual return is a statutory return in terms of the Companies and Close Corporations Acts and therefore MUST be complied with.

And yes, even Non -Profit companies (the old section 21 companies) have to pay annual returns as per the New Companies Act, 2008, effective 1 May 2011.

Failure to pay the fee (based on the turnover of the entity); will result in the Commission assuming that the company (profit and non-profit) or close corporation is not doing business or is not intending on doing business in the near future.

Non-compliance with annual returns may lead to deregistration, which has the effect that the juristic personality is withdrawn and that the company or close corporation ceases to exist.

The CIPC is planning to do a bulk de-registration at the end of August 2016……..read more

Companies and Close Corporations have 30 business days from the date that the entity become due to lodge annual returns before it is in non-compliance with the Companies Act.

B Square Financial offer Monthly accounting, Payroll, BEE/Tax/Trust consulting, SARS and other registrations, Company (profit and non-profit) formations, Director and all statutory amendments to companies and close corporations and support small businesses on all financial matters.

Contact Martin or Suzette to discuss your business needs: 032 525 4079