Why Compliance Is Critical
South Africa’s efforts to combat financial crime mean stricter enforcement of beneficial ownership declarations and annual returns. Non‑compliance can lead to deregistration, financial penalties and reputational damage.
Key Compliance Obligations
- Beneficial Ownership Registers
- Identify all individuals who directly or indirectly own or control the company above a specified threshold.
- File initial declarations with CIPC and update them within 10 business days of any changes.
- Maintain a detailed register at the company’s registered office.
- Annual Returns
- Submit returns each year during your company’s incorporation month.
- Include turnover information and upload financial statements or independent reviews if required.
- Pay the prescribed fee; penalties apply if you miss the deadline.
- Annual Financial Statements
- Ensure your financial statements are prepared in accordance with the relevant financial reporting standard (IFRS, IFRS for SMEs, etc.).
- Have them audited or independently reviewed if your public interest score exceeds certain thresholds.
- Tax Compliance
- File income tax, VAT, PAYE, UIF and SDL returns by their respective due dates.
- Issue IRP5 certificates to employees and provisional tax estimates to SARS.
Tips to Stay Compliant
- Use reminders and calendar notifications to track deadlines.
- Keep your CIPC and SARS accounts funded for fees.
- Invest in professional services or accounting software to automate filings.
- Conduct periodic compliance audits to ensure all obligations are met.