It is a sad reality that many business owners are unaware of their obligation to keep their CIPC records up to date. Consequently, deregistration may come as a nasty shock – especially when you are proudly sitting with your hard earned company documents.
Fortunately, the headache of waking up one day to find your company does not exist is one that can be easily avoided.
To keep your registration open, file your annual CIPC return within 30 days of the anniversary of your company’s incorporation – irrespective of whether the business is trading. It is mandatory to file annual returns with the CIPC to:
- Confirm you are still conducting business or trading, and
- Ensure that the CIPC has the latest information of all registered companies in South Africa.
Consequences of non-compliance
If annual returns are not filed, the CIPC will assume your company is inactive and take steps to remove it from their active records.
The legal consequence of deregistration is that your company will cease to exist. This affects not only your company but those you deal with as well. This is why it is important to check the current status of other companies on the CIPC website before engaging them for business.
Here are some of the serious consequences of deregistration:
- Your company becomes null and void.
- It can no longer trade with its name nor enter into legally binding business transactions.
- Your company name becomes available for use by anyone who may be interested in it.
- Creditors are not entitled to take legal action against a deregistered company.
- Your company’s assets, – both movable and immovable – may be forfeited to the State as bona vacantia assets.
The bottom line is that while compliance is a cost to the business, it is money – and time – well spent. To avoid the prohibitive consequences and costs involved to reinstate your company, be sure to file returns timeously. But if, like most overworked business owners, you are hard-pressed, don’t worry. Let our dedicated and competent team at Diga do it for you.
Should you require assistance with your CIPC annual return, email us on email@example.com and let us know your specific needs.