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CIPC Annual Return Penalties Explained

  • Johan De Wet
  • Oct 6
  • 2 min read

If you’ve missed filing your company’s annual returns, you’ve probably seen CIPC penalties starting to add up.

Don’t panic — this guide explains how CIPC annual return penalties work, how much they cost, and what you can do to fix or avoid them.


What Are CIPC Annual Return Penalties? 


When a company in South Africa fails to file its annual return on time, the Companies and Intellectual Property Commission (CIPC) automatically adds late penalties.


These penalties are designed to encourage compliance and ensure that the CIPC’s company database stays accurate and up to date.


How Do CIPC Penalties Work?

Here’s a breakdown of CIPC’s penalty structure:

Turnover (Last Financial Year)

Normal Filing Fee

Monthly Penalty (Late)

R0 – R1 million

R100

R150 per month

R1 – R10 million

R450

R150 per month

R10 – R25 million

R2 000

R150 per month

Above R25 million

R3 000

R150 per month

What Happens If You Don’t Pay CIPC Penalties? 


If you ignore your annual return and penalties for too long, your company can be deregistered by the CIPC.


When that happens:


  • Your company loses its legal status.

  • You can’t open or use business bank accounts.

  • You can’t tender or apply for funding.

  • Your business assets may even transfer to the state.


Once deregistered, reinstating your company can take weeks or months, and you’ll still need to pay all outstanding fees and penalties first.


Frequently Asked Questions (FAQ) 


1. When do CIPC penalties start?

Penalties start the day after your 30-business-day grace period ends.


2. How much are the penalties per month?

Currently, R150 per month per outstanding year.

3. What if I never filed at all?

You’ll owe all previous filing fees plus penalties. If more than two years are missed, your company may already be deregistered.


4. Can I avoid penalties once charged?

No. Once penalties are applied, they must be paid. The best solution is to file immediately to stop further charges.


5. Can Smartbook help clear my penalties?

Yes. Smartbook can file all outstanding returns, pay the penalties, and reinstate deregistered companies.


Final Thoughts


CIPC annual return penalties can quickly snowball — but they’re completely avoidable.

Filing on time keeps your business compliant, trusted, and legally protected.


If you’ve missed a year or more, Smartbook can help you catch up, clear penalties, and restore your good standing in just a few days.


Get your CIPC compliance sorted today with Smartbook.

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