On 21 July the Companies and Intellectual Property Commission (CIPC) issued a media release urging all companies and close corporations to submit their Annual Returns promptly. Compliance with this legal obligation is crucial to avoid deregistration. All companies, including external companies (non-profit, private, and public), and close corporations are required by the Companies Act (Act 71 of 2008) to lodge their Annual Returns with the CIPC each year.
To adhere to the law, companies have 30 business days from the day after their anniversary date, while close corporations have until the end of the month following their anniversary month to file.
Penalty fees will be imposed on companies and close corporations that fail to file their Annual Returns in time, in addition to their standard filing fee. If non-compliance persists, deregistration will follow. Once deregistered, the company or close corporation will lose its legal status, and directors or members may be personally liable for the company’s debts.
