With the introduction of Annual Returns for both Companies and Close Corporations, comes the threat from CIPRO that entities who do not submit their annual return may be deregistered. What you probably do not know is the potentially severe cost to you of this...
Entities that have been deregistered by CIPRO could face any or all of the following:
- The directors/members could become personally liable for any losses/liabilities at the time of deregistration.
- The assets could be forfeited to the state - as the corporation or company no longer officially exists, the assets are ownerless. In terms of bona vacantia (latin common law doctrine for ownerless goods), ownerless goods revert to the state.
Now all is not lost, CIPRO will entertain the restoration of your entity, but the process is lengthy and tedious. As with SARS, I am sure you will agree, its better to just keep your affairs with CIPRO up to date.
The annual fee for a Close Corporation is presently R100, and a company with turnover of less than R50m is R450. We can help you, by making sure that your returns are submitted on time each year. Call debbi on 033 330 7333 for more information.
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