Page 28 - Nexia SAB&T Business in South Africa Guide 2024

Currently, where a company or CC is required by the Act, or its MOI, to prepare
audited financial statements, it must then also file the latest approved audited
financial statements with CIPC – at the same time as the filing of its annual
return.
In an effort to enhance the filing efficiency of these audited AFS, and improve
the quality and consistency of information submitted, CIPC has implemented a
digital reporting system – whereby AFS are filed in XBRL format, rather than in
PDF format.
The Compliance Checklist
All companies (not CC’s) whose AFS are either independently reviewed or
audited are required to submit a compliance checklist to CIPC together with their
Annual Return every year. The Checklist requires that the company declare its
compliance status to certain Sections, Regulations and Schedules of the Act,
and it is ultimately the responsibility of the directors to ensure compliance and
completion of the Checklist. Any person who completes it incorrectly or fraudently
can be held responsible, and will be guilty of an offence, and liable to a fine
or imprisonment for a period not exceeding 12 months, or to both a fine and
imprisonment. The period for which the company declares its compliance is to
be known as its “Compliance Year” , and aligned to the anniversary date of its
incorporation.

The Beneficial Ownership Register
As from 24 May 2023, anyone with more than 5% beneficial ownership of a
company or close corporation must submit to CIPC information relating to the
beneficial ownership (BO) of the entity.
Directors/members are required to file this information with CIPC, every year
together with the entity’s CIPC annual return. In addition, if any change is made
to the ownership of the entity during the course of the year, the BO register must
be updated within 10 days of the change.

26