ANNUAL RETURNS FOR NON-PROFIT COMPANIES
What is the purpose of filing an annual return for Non-profit Companies?
Nonprofit companies are required by law to file their annual returns with the CIPC on an annual basis, within a prescribed time period. The purpose for the filing of such annual returns is to confirm whether a non-profit company is still actively in business, or if it will be in business in the near future.
Therefore, if annual returns are not filed within the prescribed time period, the assumption is that the nonprofit company is inactive, and as such CIPC will start the deregistration process to remove the nonprofit company from its active records. The legal effect of the deregistration process, is that the juristic personality is withdrawn and the nonprofit company will ceases to exist.