No need to register your CC yet

Steven Jones

11 June 2008

The changes to the legislation requiring annual returns to be lodged with CIPRO have not yet been implemented.

Many members of close corporations (as well as their accounting officers) have been in a state of panic as a result of the introduction of the requirement to submit annual returns to the Companies and Intellectual Properties Registration Office (CIPRO).

But there's no need to panic just yet, as the necessary systems to enable such returns and payment to be submitted have not yet been implemented.

In a communication received by members of the South African Institute of Professional Accountants (SAIPA), it was confirmed that SAIPA representatives had contacted CIPRO requesting confirmation on the introduction of annual returns by close corporations (CCs).

According to SAIPA, the reply received from CIPRO was that the legal obligation to lodge annual returns has not yet been put into operation, and that CIPRO's systems also do not yet accept lodgement of such returns and payment of the prescribed fee.

Certain CCs participated in a pilot process, and any partial lodgements done under this testing phase must therefore be regarded as tests only. The only benefit to the CCs for which annual returns have been lodged during this phase, is that their corporate information have been updated by lodging amended Founding Statements (CK 2s and CK 2As).

As no obligation to lodge currently exists, those CCs whose anniversary dates are between May and August and who have not yet lodged would only become liable to lodge returns during the 2009 anniversary of their incorporation dates.

A formal notice will be published by SAIPA as soon as the final implementation date had been determined.

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