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Annual Returns
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Annual ReturnS - How to pay yours...


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What is an Annual Return

An annual return is a small yearly fee, paid to the Registrar of Companies, to make certain that your company is still active and to keep it registered. It was implemented to stop thousands of South African companies just becoming dormant

Must I pay it?

Yes, you are legally required to pay it every year, on the anniversary of the date that the company was started. If you fail to pay it penalties are added. If you continually fail to pay it your company will become deregistered. This means cease to exist. It is extremely hard to restore your company if this happens.

Time it takes?

Annual returns are completed within one business day after receiving payment.

 

Our fees are R190 + the CIPC Fees for an Annual Return. Past years that remain unpaid are R100 per year.

But I am not using my company?

If your company has no assets and you dont want it any more, then do not pay. It will eventually cease to exist. If you have property, assets or liabilities under this company, you must pay it.  Deregistration under these circumstances will become a great headache to you, and the results can take months to resolve.

Notes

All companies are required to pay annual returns to CIPC in order to maintain their status as active on the CIPC database. Failure to pay the annual returns will result in your company being deregistered by CIPC followed by the freezing of your bank account. To prevent this from happening, CIPC requires that the annual returns be paid to them on the anniversary date of the company’s inital registration. The CIPC fees are based on the turnover of the company however there may be penalties due for previously outstanding or late returns.

What do you mean by annual return?

Annual returns is what we pay to CIPC, to keep the company active, Even if you are not trading or using the company, annual returns must still be paid if you want to use the company in the future. By law all company’s registered through companies and intellectual property commission must pay Annual returns.

Do you get reminders to pay your annual returns?

All companies  registered  through  CIPC  is  supposes  to  get  reminders  from  CIPC  either   via email or post. We get many clients who have registered directly with CIPC and other companies and have not received any notification. Our company  SwiftReg   has an automated system, so if you have registered with us we will send you a email and sms reminding you to pay your annual returns, Even if you have not registered your company with us but have submitted annual returns with us we will still send you a sms and email every year with a reminder to pay the annual returns.

What is an annual return CIPC?

Annual  returns is a yearly fee that you pay to companies intellectual and property commission to keep the company active. So even if no activities are done on the company you will stay have to pay your annual return. You should not get confused with tax returns to South African Revenue Services and cipc annual returns.

When  must  Pty  companies  file annual returns?

Annual returns must be filed by  pty companies within 30 business days after the anniversary date of its incorporation.

Must Non profit companies pay annual returns?

Yes, non profit companies must pay annual returns to cipc to keep the company active and in business. At sars non profit companies can be exempted from tax but not annual returns at the companies and intellectual properties commission.

What is the advantages of paying your annual returns on time every year?

The advantages are that you do not have to pay any penalty fees or worry that your bank account or assets are dormant and  if you want to go the the bank for a loan, or sell your assets on the companies name there will be no hold ups and everything will run smoothly.

When must   Close Corporation companies file annual returns?

Close Corporation companies file within the anniversary month of its incorporation. If the company was registered in September 2017 the annual returns must be paid within the month of September 2018.

What happens if the annual returns is not paid on time?

If annual returns is not paid on time cipc charges a penalties fee and if no payment has been paid within six month cipc will deregister the company. If the company is deregistered due to non payment of annual returns the client still has time to pay the annual returns fee and penalties and if still no payment has been made the company will go into final deregistration.

If the company goes into final deregistration due to non payment of annual returns you will first have to restore the company which is a very long process once restoration is approved by cipc annual return fees and penalties must be paid, then the status will be changed to in business.

What does Annual Returns Final deregistration mean?

Annual returns final deregistration means that the company is closed down by cipc due to the fact that no annual returns  has been submitted and the company must be restored which is a very long and expensive process as well then annual returns must be submitted. If the company does not own a fixed property on the business or never traded on the business it will be better to open a new company.

All assets belonging to the company will then belong to the state until you restore and pay up your annual returns. If you have property owned by the company it cannot be sold until annual returns are paid up.

What does Annual Returns deregistration process mean?

Annual returns deregistration means that the company is dormant by cipc due to non filing of annual returns. This process is not that complicated, you could just pay up our outstanding fees and penalties per  year and business will be in business and active again.

Where can I pay my annual returns?

You can pay your annual returns directly with cipc via there website by creating your own user name and password, or you can use a professional company like Swiftreg or any authorised representative to do your annual returns, guaranteed a annual return lodgement and certificate on receipt on completion by swiftreg.

Why must I pay annual returns?

Annual returns must be paid if you want to trade on your business as companies intellectual property commission will deregister the company whether you are trading or not.

If my annual returns is no paid on time what will happen to my company?

If the annual returns are not paid on time you will have to pay annual returns penalty fees to cipc, if you still not paying the company will eventually be closed down by cipc.

When are annual returns due?

Annual returns are due every year on the companies anniversary date. The anniversary date is the date the company was registered by cipc for example if the company was due in January 2018 the company will only be due to pay annual returns in January 2019.

How long does it take for annual returns to be submitted?

If we have all the necessary information and we submit the annual returns the status will be active or in business immediately, however  we still have to await the certificate to be emailed to us within twenty four to forty eight hours from cipc. If it’s in final deregistration and we submit all the relevant documents required from cipc. The restoration will take one to two week to be approved by cipc and take out of final deregistration putting it into deregistration process where you have to now file your annual returns.

How do you calculate annual returns?

Annual returns is calculated by the amount of turnover the company has and depends on what type of company it is for example Close corporation, PTY, Non profit companies, Incorporations and Co-operatives and if it is in the old or new act. The turnover for the annual returns is calculated on the last financial year and not the calendar year so that there is no confusion with tax returns and annual returns. nnual return turnover for the old companies act in 1973 turnover Less than ten million is four hundred and fifty rand, turnover more than ten million but less than fifty million fee Is two thousand five hundred rand and turnover  fifty million and more is four thousand rand. Annual returns turnover fee under the Close corporation Act in 1984 Turnover less than fifty million is one hundred rand, Fifty million and more is four thousand rand.

Annual returns turnover fees in the New Companies act 2008 less than one million paid in thirty business days is one hundred rand. Less than one million paid after 30 business days is one hundred and fifty rand. One million but less than ten million paid within 30 business days is four hundred and fifty rand. One million but less than ten million paid after 30 business days is six hundred rand. Ten million but less than twenty five million paid within 30 business days is two thousand rand. Ten million but less than twenty five million paid after 30 business days is two thousand five hundred rand. Twenty five million and more paid within 30 business days is three thousand rand. Twenty five million and more paid after 30 business days is four thousand rand.

What is the disadvantage of not paying your annual returns?

If failure to pay your annual returns the bank s freezers your business bank account and no money can be withdrawn or no loans can proceed. If you bought a property on your business and annual returns not up to date the property is frozen until annual return are paid up. No change can be made on companies like changing member or name change of business until annual returns are up to date. Purchasing of a business vehicle cannot be bought if annual returns are not up to date and you cannot renew your vehicle licence if annual returns are not up to day.

What documents are necessary to prove that your company was in business after the company was deregistered due to non filing of annual returns?

The information required by CIPC is certified identity copies of each director if a PTY or non profit company or identity copies of members if it’s a close corporation company. We will also need and deed search reflecting if the company own a fixed property or not from the nine provinces of South Africa. If the company does own a fixed property we will need a letter from the national treasury and the department of public works. You will also have to place and advertisement in the local newspaper giving twenty one days notice of the proposed application of non filing of annual returns. CIPC require a full page reflecting the name of the news paper and date.

We also need an affidavit giving the reason why annual  returns  was not submitted. We also need proof that the company was in business after the time of deregistration, like a bank statement, invoices. If the company was not trading and company is close and you have no proof of trading like invoices and statements, CIPC will not re-instate the company.

Can  the  annual  returns  be exempted like the tax returns?

No the annual returns cannot be exempted for companies and close corporation   because by law annual returns must be paid.

Can annual returns be paid off like other accounts?

No, annual returns cannot be paid off like other accounts, it must be the full amount required or due by cipc .No arrangement can be made. If you do not have the full amount no annual returns can be submitted.

What  is  the  difference  between  annual returns and tax returns?

A annual return is a renewal of the company every year to be paid by cipc, it is like your television licence you pay every  year. A  tax return is the tax liabilities of the company paid to South African Revenue Services.

This is two different government departments. Many clients think if they pay annual returns there tax returns are sorted as well and the same if the pay tax returns they think the annual returns are sorted.

Must the company be active and in business if you want to do any changes on a close corporation and a PTY?

Yes the company must be in business, even if you owe one year outstanding annual returns and the status shows in business, changes can be made. However if the company shows deregistered or final de-registration annual returns and reinstatement must be done before you can do a conversion  or any other changes on the company.

Who must remind you to pay annual returns?

Companies Intellectual and property commission must remind you every year to pay your outstanding annual returns, If  you  have an accountant doing  your  books  they  will pick it up as well. If you dealing with business bank accounts the banks can also remind you to pay annual returns. Any other professional company doing your annual returns can also send you a courtesy email reminding you regarding your annual returns .

What is Annual Returns financial Accountability Supplement?

Annual  returns  financial  accountability supplements of the company is a statements and reports of the company. Annual returns financial Accountability Supplements must be submitted with each annual return submitted to cipc every year.

Requirements needed to file Annual Returns Accountability Supplements?

The name of  the person responsible for recording of all day to day transactions of the business.  The identity  number  of the person responsible for recording of day to day transactions. If financial records  are  being  kept manually or electronically. Indicating how the statements and income balance sheets is prepared for example Monthly, Quarterly, Annually. If the company does stock taking and which month it is done.

Requirements needed to file Annual Returns Accountability Supplements?

Yes, annual  returns must be paid every year even if you not trading and have a nil return it must still be paid if you want to use the company at a later stage.

What If I don’t want to pay my annual returns?

If you don’t want to pay your annual returns CIPC will deregister your company and then close it down after a few years if no payment has been received.

How do I close my company?

You can contact companies and intellectual property commission to close your company, alternatively you can ignore paying your annual returns to CIPC and the company will be close down.

Can annual returns be submitted before the anniversary date?

No, annual returns cannot be submitted before the anniversary date .As  CIPC  annual returns cannot be paid before the time as it will show no returns due.

What is the difference between Company  annual  returns   and  Coida Annual Returns?

Coida annual returns is annual returns of Earnings (ROE) to the compensation fund and done at the labour department. Coid annual returns must be done every year .

Company  annual  returns  is  calculated on the companies  turnover  and  each  year of registration.  Company annual returns  is submitted to cipc (Companies Intellectual Property Commission).