What to do after company registration?

What to do after company registration?

Congratulations on registering your company. We wish you all the best in your business endeavours.

Registering your company is only the first step in managing it. Throughout its life span, a company is required to maintain its information and legal status with the CIPC. Failure to do so may have serious consequences for your company and your business activities, as it may result in de-registration, investigation, administrative fine or prosecution.

The Companies Act, 2008 places compliance requirements on all registered entities throughout its life cycle, which includes any changes to the company information, annual return filings (which includes filing of annual financial statements or financial accountability supplements) and de-registration.

Annual return

An Annual Return is a statutory return in terms of the Companies and Close Corporations Acts and therefore must be complied with.

  • It due on anniversary date of company’s incorporation date.
  • Must be filed within 30 business days of its due date.
  • Must be filed electronically via the CIPC website.
  • A fee is payable at the time of filing that is dependent on the turnover of your business.

An Annual return is not the same as a tax return which is filed with SARS. Failure to file the annual returns will result in your company being de-registered.

Financial Statements

All companies (except external companies) must prepare financial statements within 6 months after its financial year end.

The financial statements should meet the reporting standards prescribed by the Companies Act. They must present fairly the state of affairs and business of the company, explain the transactions and financial position of the business of the company.

They must show the company’s assets, liabilities and equity, as well as its income and expenses, and any other prescribed information

We can take care of these tedious reporting requirements

Changes in directors or auditors

CIPC must be notified of any changes in the directorship of your company within 10 business day of such change.

CIPC must also be notified of any changes to the auditor, if applicable (appointment, resignation or removal) of your company within 10 business days of such change

Change in address

If a change in the physical and or postal address occurs, the company must notify the CIPC of such change within 5 working days before the change is to take effect.

Deregistration & Liquidation

When a company stops trading, it needs to apply either for deregistration or for liquidation, depending on the circumstances.

De-registration is advisable in cases where the company does not have any assets and is inactive, while liquidation is advisable in cases where the company has outstanding liabilities that must be resolved first.

Business rescue

When a company is unable to honour its debts as they become due and payable within the immediately ensuing six months, the board of directors may resolve to place the company into business rescue.

We can take care of these tedious reporting requirements