Annual Returns

What you need to know

Annual returns is the tax levied by CIPC to keep the company`s registration active. Failure to pay results in penalties and eventually deregistration.

The fees are based on the company’s annual turnover and verified through SARS and it is an offence to knowingly provide false information to CIPC

Please note that from 1 July 2024, CIPC will NOT process any company annual returns if Beneficial Ownership has not been filed.

You can apply for Beneficial Ownership directly on this website.

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Our fee is R190 to which is added the CIPC dues for the total payment

Price : From R100
How long does it take? 1 Day

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Frequently Asked Questions

What are Annual Returns?

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.

Why do I need to pay it?

If your annual returns are not paid CIPC after 30 days CIPC will levy penalties against the company. If the annual returns and penalties continue to remain outstanding, CIPC will 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

Why are there penalties on my Annual Returns calculations?

If your annual returns are not paid within on time, CIPC levies penalties. The penalties then become part of the money due to CIPC so you will pay more if you pay late.

What happens if I don’t pay Annual Returns?

If your annual returns remain unpaid penalties are levied on them If they continue to remain outstanding, after 2 years, CIPC will start the process to deregister your company. If your company is in the deregistration process, the bank account is frozen as CIPC prepare to close your company permanently.

What is Deregistration?

Deregistration is when a company ceases to exist as a legal entity. It is at this point that the obligation of the company’s officers (Directors) cease. A company is triggered for deregistration at CIPC after 2 consecutive years of non-payment of annual returns.

What is FAS? Why do I need to complete it?

FAS is the Financial Accountability Supplement and is now a compulsory part of your annual returns. It is essential that it is accurately completed as failure to do so can result in some pretty hefty fines. If you don’t submit the FAS CIPC will not issue your annual return certificate.

How are Annual Returns Calculated?

Annual returns are calculated on turnover – the turnover your company has done during its anniversary year i.e. the 12 months from the registration date. This may well be different to the company’s financial or tax year. There are varying turnover thresholds for the different types of companies i.e. CCs, Pty’s (new Act and old Act) and NPCs.

What if my company had no turnover?

The company`s annual returns still need to be paid to keep your company active. In this case you would submit your turnover as R0

What if my company had no turnover?

The company`s annual returns still need to be paid to keep your company active. When completing the turnover capture it as R0.

Annual Returns (CIPC) vs Company Tax Returns (SARS)

The Company Annual Return at CIPC (Companies and Intellectual Property Commission) is a mandatory filing that updates the company`s status and confirms its compliance with company law in South Africa, such as the company`s registered details, directors, and shareholding. In contrast, the Company Tax Return at SARS (South African Revenue Service) is a filing that reports the company`s financial performance, income, expenses, and tax liability to ensure compliance with tax laws. While CIPC`s return focuses on corporate registration and governance, SARS`s return is concerned with tax obligations.

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What are Annual Returns in South Africa?

Annual returns refer to a mandatory filing requirement for all registered companies and close corporations (CCs) in South Africa. It entails submitting updated information about the entity`s directors, shareholders, and financial status to the Companies and Intellectual Property Commission (CIPC) on an annual basis.

Why Does CIPC Require Annual Returns to be Filed?

CIPC mandates the submission of annual returns to ensure the accuracy and transparency of company records. By regularly updating information on directors, shareholders, and financial standing, CIPC aims to uphold corporate governance standards, protect stakeholders` interests, and maintain the integrity of the business registry.

What Information Needs to be Included in Annual Returns?

Annual returns typically include details such as the company`s registered address, details of directors and shareholders, financial statements, and confirmation of compliance with statutory requirements. Providing accurate and up-to-date information is crucial for ensuring regulatory compliance and avoiding penalties.

What Happens if Annual Returns are Not Filed?

Failure to submit annual returns within the prescribed timeframe can result in severe consequences for companies and CCs. CIPC may impose penalties, issue compliance notices, or even deregister non-compliant entities, rendering them unable to conduct business legally. Additionally, directors may be held personally liable for the entity`s debts and obligations incurred during the non-compliance period.

How Does Non-Compliance with Annual Returns Differ from Tax Obligations?

While tax obligations and annual returns are both essential aspects of corporate compliance, they serve distinct purposes and are governed by separate regulatory frameworks. Tax obligations primarily focus on the assessment and payment of taxes to the South African Revenue Service (SARS), ensuring that companies contribute their fair share towards public revenue. In contrast, annual returns primarily concern the maintenance of accurate company records and compliance with corporate governance requirements enforced by CIPC.

What Sets Annual Returns Apart from Other Company Red Tape?

Annual returns stand out from other administrative requirements due to their recurring nature and direct impact on the company`s legal status. Unlike one-time filings or occasional regulatory obligations, annual returns demand regular attention and diligence from company officers throughout the entity`s existence. Moreover, non-compliance with annual return requirements can lead to swift and severe penalties, underscoring the importance of prioritizing this aspect of corporate governance.

How Can Companies Ensure Timely Compliance with Annual Returns?

To avoid the pitfalls of non-compliance, companies and CCs should establish robust internal procedures for monitoring and fulfilling annual return obligations. This may involve appointing dedicated personnel responsible for regulatory compliance, maintaining accurate records of corporate activities, and setting reminders for upcoming filing deadlines. Additionally, seeking professional advice from legal or accounting experts can provide valuable insights into navigating the complexities of corporate compliance in South Africa. In summary, annual returns represent a critical component of corporate governance in South Africa, serving to uphold transparency, accountability, and regulatory compliance within the business sector. By understanding the significance of annual returns, companies and CCs can proactively fulfill their obligations, safeguarding their legal status and reputation in the marketplace. Compliance with annual return requirements not only fosters trust and credibility among stakeholders but also ensures the long-term viability and success of the entity in a dynamic and competitive business environment.