One of the statutory requirements many micro, small and medium-sized enterprises (SMEs) fail to comply with is the submission of annual returns to the Companies and Intellectual Property Commission (CIPC). This allows the CIPC to determine whether the entity is still trading/in business.
If your entity does not submit the returns to CIPC within the prescribed period for two consecutive years then the CIPC will begin with the deregistration process and remove the company or close corporations from its active records. The legal consequence is that the entity will cease to exist as a juristic person.
So when are you supposed to submit the returns?
If you’re entity is a company (Private, Public External, Non-profit or Personal Liability company), then you are required to file the return within 30 business days of the anniversary of the companies incorporation. So, if your company was incorporated on 10 April 2010, you should submit the company’s return within 30 business days of 10 April 2017.
If you’re entity is a close corporation, then you are required to file the return within the anniversary month of incorporation, and the month thereafter. So, if your close corporation was incorporated in May 2011, you should submit your returns between May 2017 and June 2017.
Returns are filled online at www.cipc.co.za, with a guide that can be found at http://www.cipc.co.za/files/6713/9988/8907/How_to_file_an_annual_return_online.pdf. Your latest financial statements should be submitted along with the return to CIPC. There is also an annual return fee, calculated according to the turnover (revenue/income) of the entity.
Companies Act, 2008 fee table:
|Annual Turnover||Filing within 30 business days after anniversary date||Filing more than 30 business days after anniversary date|
|Less than R1 million||R 100.00||R 150.00|
|R1 million but less than R10 million||R 450.00||R 600.00|
|R10 million but less than R25 million||R 2000.00||R 2500.00|
|R25 million or more||R 3000.00|
|Re-instatement Application (Form CoR40.5)||R 200.00|
Close Corporations Act, 1984 fee table:
|Annual Turnover||Filing within 2 months from beginning of anniversary month||Penalty for each late lodgement|
|Between 0 to R50 million||R 100.00||R 150.00|
|R50 million and above||R 4000.00||R 150.00|
|Re-instatement Application||R 200.00|
Tinyeleti Consulting is a professional services firm that offers services that include the submissions of annual CIPC and SARS returns, as well as the compilation of annual financial statements. We can compile and submit the CIPC annual return on behalf of your company/close corporation from R 450 excl. VAT.
We also offer packages specially tailored for SMEs that cater to the common needs they face. You can find out more at http://www.tinyeleti.com/accounting-services/