Close Corporation Annual Returns (posted 22 May 2008)

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Please take note that regulations made under Section 10 of the Close Corporations Act, 1984 (Act No. 69 of 1984) pertaining to the annual returns contemplated in section 15A of the aforesaid Act came into effect on 1 April 2007. This hereby states that all close corporations have to annually lodge an electronic annual return with The Registrar of Close Corporations (CIPRO) by no later than the month following the anniversary month of incorporation of the close corporation.

CIPRO publicly gave notice that the necessary infrastructure and website amendments had been implemented and that as of 1 May 2008 all close corporations are to duly submit their annual returns and pay an annual duty within the prescribed periods. The prescribed annual duty is as follows:

Turnover under R50 million – R100.00
Turnover over R50 million – R4000.00

Failure to timeously lodge your close corporation’s annual return will result in a penalty fee, and if after six months there is still no lodgement thereof, CIPRO will implement immediate deregistration of the close corporation. It is also noted that it is a lengthy procedure to re-instate a close corporation should it be deregistered due to the failure to comply with the aforesaid Act.