The CIPC annual return deadline for the submission is the month in which the specific company has been registered. It is very important that this annual return deadline gets done on time.
If CIPC do not receive this on time, they can assume that your company be inactive and deregister it.
What typically happens. Soon after one fails to submit the CIPC annual return, the note on the system will be that the company is in "deregistration process". At this stage one can still submit the annual returns, pay some penalties, and change the status back to 'in business".
After the stage of "deregistration process" CIPC will change the company status to "final deregistration" and will deemed to be deregistered.
Hereafter a company or closed corporation will need to be reinstated.
The consequences of the final deregistration do have several issues, some stated below:
- Any transactions or actions by directors can be seen as void or invalid.
- The bank account and assets of the company can be frozen.
- Property or other assets will befall to the state. The legal principle is called Bona Vacantia, which means assets without an owner.
When your company is in final deregistration it can be a long and expensive exercise to reinstate the company, especially if the company hold property or other assets. You will most definitely have difficulty trading. No active bank account to trade in. For all these reasons above, please ensure to keep the CIPC annual return up to date annually.
Our clients get put on a control list, to automatically remind us of the annual return due.
Contact our office for assistance with your CIPC annual return and make sure you never need to stress about this again.
We are currently members of the South African Institute of Tax Practitioners & Institute of Accounting & Commerce (The principle director JN Basson are registered with practice number AO652993).
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