CIPC annual returns and beneficial ownership: what every company owner must file
CIPC filings are easy to forget because they have nothing to do with SARS. But a company that stops filing them can be deregistered, and a deregistered company can’t trade, and its bank account can be frozen.
The annual return
Every company and close corporation must file an annual return within 30 business days after the anniversary of its date of incorporation. A company incorporated on 26 January files each year within 30 business days after 26 January.
The fee depends on the company’s turnover, and CIPC charges more if you file late. With the return, a company either files its annual financial statements (if they’re audited or must be filed) or completes a Financial Accountability Supplement.
Beneficial ownership
Companies must file details of their beneficial owners, the individuals who ultimately own or control the company, with CIPC. A new company must do this within 10 business days of incorporation, and any change must be filed within 10 business days of it happening. CIPC also asks you to confirm the information when you file your annual return.
Before you can file, the company needs an up-to-date securities register. If shares were never formally issued after incorporation, sort that out first.
What happens if you don’t file
If a company fails to file annual returns for two or more years in a row, CIPC can start deregistering it. Reinstating a deregistered company takes time and money, so it’s far cheaper to file on time.
A simple habit
Diarise your anniversary date, check your beneficial ownership details whenever shares change hands, and file both together each year.
This article is general information based on the law at the time of writing. It isn’t advice for your specific situation. Get in touch if you’d like help with yours.