CIPC issues notice ditching compliance checklist for smaller companies

CIPC issues notice ditching compliance checklist for smaller companies

• 11 March 2020
• Accounting
• Moneyweb

The Companies and Intellectual Property Commission (CIPC) has decided to ditch its proposed compulsory compliance checklist for smaller companies. Only audited and independently reviewed companies are required to complete the checklist.

Earlier this month Adv Rory Voller confirmed the checklist would not be compulsory for smaller businesses. The CIPC has now officially confirmed this by way of Notice 9 of 2020.

As from the 5th of March 2020, if a company’s annual financial statements are NOT audited or independently reviewed, they will NOT be required to complete the Compliance Checklist.

If the company’s annual financial statements ARE audited or independently reviewed, it is mandatory for those companies to complete the compliance checklist. The following types of companies need to confirm if the company’s annual financial statements ARE audited or independently reviewed, i.e. Incorporated (Inc); Proprietary Limited (Pty) Ltd; Limited (Ltd); State Owned Company (SOC); Non-Profit Company (NPC).

The Notice reads:

From the 5th of March 2020:

• It is mandatory for the following types of companies, i.e. Incorporated – Inc. (21); Proprietary Limited – (Pty) Ltd (07); Limited – Ltd (06); State Owned Company – SOC (30); Non Profit Company – NPC (08) to confirm if the company’s annual financial statements are audited or independently reviewed.
• If you have confirmed “no” that your company’s annual financial statements are not audited or independently reviewed you will not be required to complete the Compliance Checklist. An email will be sent to all active directors and to the person who submitted this information confirming this.
• If you have confirmed “yes” that your company’s annual financial statements are audited or independently reviewed you must complete the Compliance Checklist.
• Upon submitting the Compliance Checklist, an email will be sent to all active directors and to the person who submitted the Compliance Checklist confirming the information sent on behalf of the Company.
• Reference to Compliance Year in the Compliance Checklist is aligned to the anniversary date of a company’s incorporation.
• The Compliance Checklist is a standalone service and the information required must therefore be submitted by a company to the CIPC within 30 business days after the anniversary of the company’s date of incorporation.
• The Compliance Checklist now contains a comment box for each question, should companies wish to explain their specific answers given to the CIPC.

For any questions or specific points of clarification on the Compliance Checklist please send an email to [email protected].For more information, click here. 

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