Annual returns are a tax levied by CIPC for your company to remain registered with CIPC and comply with company law. Each year on the anniversary of your company’s registration the annual returns are due even if your company did not trade or made a loss. The annual returns dues are calculated on annual turnover. If you fail to settle your annual returns, penalties will be levied against the company.
If the annual returns and penalties continue to remain outstanding, CIPC may start a Deregistration process. This is the point when bank accounts are frozen and fixed properties become assets of the lender. You may be able to restore the company if you are still trading. This is a time consuming and costly process which is best avoided