20 Sep 2017

Over 60 000 companies were de-registered last year due to the non-compliance of submission of  annual returns.

In an interview, Companies and Intellectual Property Authority (CIPA) awareness and communications manager, Ms Marietta Magashula raised a concern over an increasing number of registered companies which do not submit annual returns and also fail to pay a P300 fee to CIPA.

She explained that the submission of the annual returns  ensured that the relevant authorities such as the Registry of Companies had an updated  information about all registered companies.

However, Ms Magashula regretted that there were some companies which continue to disregard the annual return regulations.

She said non-compliance was common among upcoming companies, which often gave excuses that they were not aware of the obligations despite being issued with a letter of notification for the submission of annual returns.

Ms Magashula said CIPA would continue to  remind companies to submit annual returns by making phone calls, sending message alerts as well as writing them letters of notification.

The CIPA compliance and enforcement manager, Mr Kesego Modongo explained that if the companies failed to comply with the annual return regulations, it would be liable to pay P900 charge annually as penaly plus the annual fee of P300.

Should the company disregard the penalty, Mr Modongo said it would be de-registered until it settles its outstanding balances and re-register accordingly.

He implored company owners to desist from such negativity and abide by the annual return regulations.

Mr Modongo also advised company owners not to hesitate to consult with their office whenever their companies were not doing well.

He said  consultation could help in making arrangements with the company owner on how they could settle their outstanding balances on a contract agreement deal.

In addition, Mr Modongo advised procurement authorities to consult with their offices before purchasing goods and services from any company in order to check its balances if it was operating legally.

He said once a company is de-registered due to its non-compliance of annual return submission and continues to operate, it would be operating illegally. Ends