| All companies (including external companies and non-profit companies) and close corporations (CC’s) are required by law to lodge their annual returns electronically with CIPC within a certain period of time each year in terms of the requirements of the Companies Act, no 71 of 2008 (The Act). CIPC uses this information to ensure that it is in possession of the latest information of the company or CC and to determine whether the company or CC is conducting business activities. An annual return is a statutory return in terms of the Companies and Close Corporations Acts and therefore MUST be complied with. Failure to do so will result in the CIPC assuming that the company and/or close corporation is no longer in business and that they intend not to trade in the future. Non-compliance with annual returns will lead to deregistration. There are far-reaching consequences in that, bank accounts may be frozen, import or export licences revoked and any agreements nullified (cancelled) etc. Companies have 30 business days from the date that the entity become due (i.e. date of registration and not financial year end) to file annual returns before it is in non-compliance with the Companies Act. Certain categories of companies or CC’s may need to file their annual returns together with annual financial statements based on their revenue and/or Public Interest Score (PIS). Regulations 26(2) sets out the method of calculating a company’s PIS.
Kind regards Chantelle Barker 071 680 3088 info@planbstatservices.co.za |
