CIPC Annual Returns: Filing of Financial Accountability Supplement
07
Nov

The Companies Act, No 71 of 2008, requires all companies (including close corporations) in South Africa to file annual returns and pay the requisite fee with the CIPC in the anniversary month of that company. The return has to be completed with certain compulsory information, such as turnover. Qualifying entities have to submit their annual financial statements together with the annual return.

In the event that a company is not required to submit annual financial statements with the annual return, or (if permitted) elect not to submit their annual financial statements with the annual return, the company is obliged to complete and submit a COR30.2 Financial Accountability Supplement. This supplement requires the company to declare the following information to the CIPC:

  • The name of the person primarily responsible for recording the day to day financial transactions and maintaining the company’s financial records.
  • The name of the person primarily responsible for compiling the financial information and preparing reports and statements for the company.
  • The person who provides advice to the company concerning the maintenance of financial records.
  • The name of the person performing the independent review of the annual financial statements.
  • Indicate how the company maintains its financial records – manually in paper based records, or electronically.
  • Indicate how the company prepares bank reconciliations, balance sheets and income and expense statements.
  • If the company deals in goods, with what frequency it carries out stock takes.
  • If the company holds any assets in fiduciary capacity for persons not related to the company, as contemplated in Regulation 28(2/(b).

It is important to realise that the company’s directors are responsible for making this declaration to the CIPC, even in the event that an authorised person or firm is mandated to submit the COR30.2 on the company’s behalf. Directors will be held liable in the event of them making or sanctioning incorrect declarations to the CIPC.

 

Oddette Boshoff

Director

8 Comments

  1. ENOS MSWELI
    August 24, 2018 - Reply

    WHAT DOES THIS ACCOUNTING SUPPLIMENT MEAN

  2. Oddette Boshoff
    October 3, 2018 - Reply

    Dear Enos

    Apologies for the late reply – it seems our stringent anti-spam system held back your comment.

    When you submit and pay your annual return for your company at the CIPC, you are now required to either submit annual financial statements with the annual return, or you may choose in certain circumstances to complete and submit the Financial Accountability Supplement (FAS) if you are not going to submit annual financial statements.

    The FAS requires certain information about your company and must be completed and submitted on the CIPC website before you will be able to submit your company’s annual return.

    You can also access more information on this on the CIPC website. Herewith a link to the notice regarding the FAS:

    http://www.cipc.co.za/files/8515/3371/4962/Notice_52_of_2018.pdf

    Kind regards,

  3. Madimetja
    October 5, 2018 - Reply

    Good day

    What happens to companies that has registered long time ago but it pays annual returns every year hoping to get a tender or work and it doesn’t have bank account!

  4. Oddette Boshoff
    October 15, 2018 - Reply

    Madimetja

    I hope I understand your question correctly.

    If you submit and pay your annual returns every year, you would be able to continue operating as normal, but will now have to file the FAS in addition to the normal annual return information.
    If you operate a company, all transactions for the company should go through the company’s bank account.
    Your company should be registered with SARS and they will also require a bank account in terms of tax administration.

  5. Lee-anne
    February 5, 2019 - Reply

    Hi Oddette

    I am struggling to understand which of our entities should submit Financial Accountability Supplement and which entities we need to submit via XBRL.

    The public score for most entities is under 100 and are internally compiled however independently reviewed by the auditors.

    Also as we have new auditors, the financial statements are over the 6 month mark, will this be a concern?

    Quick question on the AR, as we all know the turnover is required on submission. Should a entity have recoveries of R280 000 however has a loss for the year of R5 3million. Can I assume that I am using the correct figure by using the R280 000?

    Regarding external companies, we have 2 and financial statements are not prepared for these entities as they are dormant – do we submit Financial Accountability Supplement?

    Apologies for all the questions and I appreciate your time.
    Regards
    Lee-anne

    • unikadmin
      February 26, 2019

      Lee-Anne

      Without having sight of all the relevant information and an engagement letter, I cannot advise on your specific question.

      In general, based on the information provided you should be able to only submit a FAS for each company, even if dormant. However, this might change in the near future as the CIPC have indicated to amend these requirements.

      The 6 month time lapse you will have to take up with your new auditors and / or advisors, and directors of your companies.

      Kind regards,

  6. neliswa
    February 8, 2019 - Reply

    Good day,

    What if the company does not have a bank account and it is still looking for jobs and have never received any money since the company registered is it supposed to file AFS as well. let say they are just keeping their company active for the past years in order to look for opportunities

    • unikadmin
      February 26, 2019

      Neliswa

      In general, based on the information provided, you should still submit a FAS for the company, even if dormant.

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