Do I Need to File CIPC Annual Returns If My Business Didn’t Trade?

Short answer: YES. Even if your business made zero income, had no clients, or has been “dormant,” the Companies and Intellectual Property Commission (CIPC) still requires you to file annual returns every single year.

This is one of the most common mistakes South African business owners make — and it’s why many companies end up deregistered without realising it.

In this Smartbook guide, we’ll explain why non-trading businesses must still file annual returns, what to declare, and how to stay compliant even if your company is 100% inactive.

Why You Must File Annual Returns Even If You Didn’t Trade

CIPC annual returns are not tax returns. They have nothing to do with income, profit, or trading activity.

Annual returns are simply a way for CIPC to confirm:

• That your company still exists

• That it is still active

• That you want to keep its registration

Because of that, all registered companies — trading or non-trading — must file annual returns.

Failure to do so leads to:❌ Penalties❌ “In Process of Deregistration” status❌ Full deregistration

Smartbook Tip: A company can be deregistered even if it has never traded. Deregistration does not depend on revenue — only compliance.

What You Must Declare If Your Business Didn’t Trade 

If your turnover was R0, you simply declare that your company had zero income for the year.

CIPC’s annual return system includes a bracket for:

Turnover: R0 – R1,000,000

This bracket includes:

• Dormant companies

• Newly registered companies with no revenue

• Companies that paused trading

• Companies awaiting funding

• Shelf companies

Your annual return fee will only be R100 per year if you fall into this category (plus penalties if you’re late).

Dormant Businesses MUST Still File Annual Returns

A “dormant” company is one that hasn’t traded, but it is still on the CIPC register.CIPC does not automatically pause or suspend such companies.

You only avoid annual returns if:

✔ You voluntarily deregister the company, or

✔ You are a sole proprietor (which is not a registered company)

Otherwise, CIPC expects your return every year.

 

What Happens If You Don’t File Annual Returns?

Whether you traded or not, these consequences apply:

1. Late Penalties Accumulate Monthly

CIPC charges R150 per month per outstanding year — even if turnover was R0.

2. Your Company Enters “In Process of Deregistration” 

CIPC starts closing the company for non-compliance.

3. Full Deregistration 

If ignored long enough, your company will be completely removed from the register.

This means:

• You lose the registration number

• SARS may deactivate your tax profile

• You cannot trade legally

• Bank accounts may be closed

4. Reinstatement Costs More

To restore a deregistered company, you must:

• File all outstanding annual returns

• Pay all penalties

• Complete a reinstatement process

Smartbook charges R2,000 for reinstatement + CIPC fees.

How Much Will It Cost If Your Company Didn’t Trade?

If your turnover was zero, your fees are:

Type	Amount
Annual return fee	R100 per year
Late penalty	R150 per month per outstanding year

Frequently Asked Questions (FAQ)

1. Do I need to file annual returns if my business made R0 income?

Yes. Annual returns are required even for dormant companies.

2. What do I declare if my company didn’t trade?

Select the lowest turnover bracket: 0 – R1,000,000.

3. Can my company be deregistered even if it never traded?

Yes. Trading activity does not affect compliance — annual returns must still be filed.

4. How much does the annual return cost for a non-trading business?

Only R100 per year, plus penalties if you’re late.

5. Can Smartbook file my annual returns for me?

Absolutely. Smartbook can file your returns, calculate penalties, and fix compliance issues fast.