Question 1

What are annual financial statements (AFS)?

Accepted Answer

Annual financial statements are the formal year-end accounts of a business. They include a statement of financial position (balance sheet), statement of comprehensive income (profit and loss), statement of changes in equity, statement of cash flows and supporting notes. They are prepared in accordance with IFRS for SMEs (most Pty Ltds) or full IFRS (regulated entities) and are signed off by the directors. SARS requires AFS to support the ITR14 and CIPC may request them where a Public Interest Score makes them mandatory.

Question 2

Does every South African company need audited AFS?

Accepted Answer

No. The Companies Act uses the Public Interest Score (PIS) to determine whether AFS must be audited, independently reviewed or only compiled. Most owner-managed Pty (Ltd) companies with a low PIS only need independently compiled AFS. Audits are required where the PIS is 350+, or 100+ if the AFS are compiled externally, or where required by the company's MOI.

Question 3

What is a CIPC annual return and when is it due?

Accepted Answer

The CIPC annual return is a yearly filing that confirms your company's details (registered address, directors, turnover) and pays a small fee to CIPC. It is due within 30 business days of your company's registration anniversary. Missing the annual return triggers a final deregistration process — once deregistered, your bank accounts can be frozen and contracts in the company's name can be challenged.

Question 4

Is a CIPC annual return the same as a SARS tax return?

Accepted Answer

No. They are filed with different bodies for different purposes. The CIPC annual return is a corporate-registry filing that keeps your company on the register. The SARS ITR14 is an income tax return that calculates tax payable. You must file both every year, and they are not interchangeable.

Question 5

What is the Beneficial Ownership (BO) filing?

Accepted Answer

Since the Companies Amendment Act came into force in 2023, all South African companies must file a Beneficial Ownership register with CIPC listing the natural persons who ultimately own or control 5% or more of the company. The BO filing must be lodged within 10 business days of the CIPC annual return and updated whenever ownership changes.

Question 6

My company was deregistered — can you restore it?

Accepted Answer

Yes. We file Form CoR 40.5 with CIPC together with the outstanding annual returns, BO registers, tax compliance evidence and supporting documents. Restoration typically takes 4–8 weeks. We also catch up any outstanding SARS submissions so that the restored company is fully compliant.

Question 7

Do you also file the Workmen's Compensation Return of Earnings?

Accepted Answer

Yes. The annual Return of Earnings (W.As.8) is submitted to the Compensation Fund every year before the deadline (typically end of May). It declares total earnings for the prior year and triggers the assessment for COIDA cover. We file it as part of our Medium and bespoke packages.

Question 8

What is the Public Interest Score and why does it matter?

Accepted Answer

The Public Interest Score (PIS) is a Companies Act formula based on number of employees, third-party liabilities, turnover and number of beneficial owners. It determines (a) whether your AFS must be audited, reviewed or only compiled, and (b) whether they must be filed with CIPC together with the annual return. We calculate the PIS as part of every AFS engagement so the correct assurance level is applied.

Question 9

How long does it take to prepare AFS?

Accepted Answer

If we run the monthly bookkeeping, AFS are usually finalised within 2–3 weeks of the financial year-end. If we are preparing AFS for a new client based on records they provide, it typically takes 3–6 weeks depending on how complete and reconciled the records are.

Annual Financial Statements& CIPC Compliance

Statements & Compliance Services

Annual Financial Statements (AFS)

CIPC Annual Returns

Beneficial Ownership (BO) Filing

Workmen's Compensation (COIDA)

What's in Your Financial Statements?

Statement of Financial Position (Balance Sheet)

Statement of Comprehensive Income

Statement of Changes in Equity

Cash Flow Statement

Accounting Policies & Notes

Professionally Prepared by a SAICA CA

Financial Statements & CIPC Questions

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