Annual returns: what they are and what happens if you skip them

Who has to file, and why

Since 1 September 2008, all companies and close corporations have been legally required to submit annual returns to the Companies and Intellectual Property Commission. The filing does two things: it confirms to the Registrar that your business is still operational, and it keeps your company information current on the register.

It applies to your registration, not to your trading activity. A dormant company that has never invoiced anyone owes the same annual return as one turning over millions.

What happens if you do not file

If you fail to submit and pay for more than six months from the due date, CIPC may begin deregistration. A deregistered company is no longer legally recognised. In practice that means:

• It loses its legal standing to trade or operate.
• Banks can freeze or close the company account.
• You fall out of contention for tenders and contracts that require a company in good standing.
• Restoring the company later costs considerably more than filing would have.

What it costs

The fee depends on your entity type and annual turnover.

Beneficial ownership is now part of the same job

All companies and CCs must also submit a beneficial ownership declaration, at an additional cost of R800. Since 1 July 2024 this is not merely a parallel obligation: beneficial ownership must be filed in the same calendar year as the annual return, and until it is done, the annual return cannot be submitted at all.

That is the trap most companies fall into. They budget for the annual return, discover the beneficial ownership filing is blocking it, and lose weeks they did not have.

If you are already behind

Multiple outstanding years are still fixable, and it is far cheaper than restoring a deregistered company. Send us your registration number and we will check exactly what is outstanding, which years, and which turnover band applies, before you commit to anything.