More often than not, people register their companies with the company registry and neglect the obligation that comes coupled with such registration for example the filing of annual returns amongst other things. This article therefore serves to enlighten over the implications that come with the failure to meet the obligation of filing annual returns for a company.
To begin with, annual returns refers to a statutory return in terms of the Companies and other business entities act which is supposed to be lodged by all private limited companies in Zimbabwe with the companies registry to which serves the purpose of giving a snapshot of important (non-financial) information about the company's internal structures. This information includes the company name, its registered address, the number of class shares and those taken, the company directors, auditors and secretary to mention but a few.
These annual returns are supposed to be lodged with companies registry after every 12 months from the date at which the last return was lodged. The failure to comply of a private limited company to lodge with the companies registry annual returns, warrants severe implications on the company to which includes penalties, the striking off of the company from register and/or sanctions against the directors of the company as provided for in terms section 52 of the companies and other business entities act.
It is therefore very much advisable that all private limited companies subscribe to the provisions of the companies and other business entities act and meet the obligations arising therein most importantly the filing of annual returns lets the companies get struck off from the register.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
