- All Company’s registered in South Africa has a legal obligation to submit financial information and pay a fee related to its performance to the Company’s Registrar (CIPC) – even if it is dormant.
- Failure by a Company to lodge the Annual Returns will result in CIPC changing its status to ‘deregistration process’ and in due course finally deregister and remove the Company from the Companies Roll.
- This poses a risk to Companies, their shareholders and directors of reputational harm, personal exposure to liabilities and individuals could find themselves being rejected when applying for credit in their personal capacity.
- Once deregistered directors will have to follow a formal process to reinstate the Company, which could prove costly. Click here to find out more on Re-instatements.
By Maria Smith