All companies in South Africa (including close corporations) must submit an annual return to the CIPC in the month of its registration anniversary, and pay the required annual duty.
A requirement that came into effect during February 2019 is that the company must either submit the latest annual audited financial statements, or alternatively complete the Financial Accountability Supplement (FAS), before the annual return will be accepted by the CIPC. Failure to do so will result in penalties, and ultimately the deregistration of the company.
If a company is required to be audited, the latest audited financial statements must be submitted to the CIPC. The CIPC will not accept financial statements older than the previous year’s statements.
The submission of the financial statements can only be done in the XBRL or iXBRL format. This means that whatever program is used to compile the annual financial statements, it will have to be converted into either the XBRL or iXBRL format.
If a company is not required to be audited, it must complete the electronic Financial Accountability Supplement and submit it to the CIPC.
Clients are urged to address any outstanding annual financial statements, as well as the format in which these financial statements are compiled, as there are significant time and cost factors to be considered.