Annual returns by companies and close corporations

Companies and Close Corporations are required by law to submit an annual return and pay the applicable fee to the Registrar of Companies/Close Corporations annually in the anniversary month of the entity’s date of incorporation. The requirement for the submission of annual returns is imposed by the Companies Act and Close Corporations Act and should not be confused with the submission of tax returns in terms of the Income Tax Act.

Failure to lodge the return will result in the imposition of a penalty in addition to the annual fee by the Registrars and if the return remains outstanding for a period of six months, it will result in the deregistration of the entity.

The effect of deregistration is that the entity ceases to exist and can no longer trade.  The directors or members of the entity may also personally be held responsible for the debts of the entity.

Please click here for more information about annual returns.