CIPC: Compliance Checklist Report NPCs

CIPC: Compliance Checklist Report NPCs logo

Summary:

The Companies and Intellectual Property Commission (CIPC) has published their Compliance Checklist Report for Non-Profit Companies (NPCs).


Article:

Between 2010 and 2024, the number of churches (specifically in the “charismatic church” sphere) that are registered as NPCs with the CIPC, grew from 22 churches to 261.

Compliance Checklist data has identified churches, specifically those that operate within the “charismatic church” sphere and which are registered as Non Profit Companies (NPCs) with the CIPC as being susceptible to mismanagement due to the public trust they command and dependence on financial contributions.

The aim of this Report is to highlight:

  • The growth trajectory of churches registered as NPCs.
  • The specific provisions of the Companies Act that relate to NPCs 
  • The Compliance Checklist data linking to this specific type of NPC.
  • The areas of noncompliance with the Companies Act.
  • Trends identified.
  • Measures that this specific type of NPC as well as NPCs in general, can take to mitigate the risks identified and thereby strengthen the level of corporate governance and compliance.  

Contents:

  1. Introduction
  2. How does the Compliance Checklist work
  3. Non - Profit Companies
  4. Conclusion 

Click here to download the 14-page Report:

https://www.cipc.co.za/wp-content/uploads/2026/03/Compliance-Checklist-Report-NPC-March-2026-pdf-final.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

  • The Companies Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
  • Where you perform these compliance tasks on behalf of your client, you need to ensure that you comply with all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.
  • It is important to stay informed on publications issued by the regulators, e.g. CIPC.

Relevance to Your clients:

  • An entity (company or close corporation) has a duty to comply with the Companies Act, and directors have to fulfil their duties accordingly, otherwise they could be held liable.
  • It is important to stay informed on publications issued by the regulators, e.g. CIPC.

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