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CIPC Announces Re-Commencement of Compliance Obligations for Companies and Close Corporations

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CIPC continuously strives to assist and ensure that companies and close corporations based in South Africa operate with ease. Be it by extending deadlines or providing relaxations in AFS filings, CIPC has always acknowledged the impact of Covid-19 and the nationwide lockdown on companies and close corporations. However, with the nation bouncing back to normalcy, CIPC has brought back some stringent measures to ensure compliance and transparency in financial reporting.

South Africa to Progress From Lockdown Level 1

As the South African economy gradually moves from lockdown level 1 to reinvigorating the economy, CIPC announces re-commencement of compliance obligations for eligible entities. This means every eligible company and close corporation needs to file their Annual Financial Statements (AFSs) as per the guidelines of the CIPC in line with the Companies Act, Act 71 of 2008 as amended.

Here’s What You Need to Know

This re-commencement was implemented from 1st December, 2020, wherein all companies and close corporations are required to comply with the provisions laid down by the Companies Act, Act 71 of 2008, as amended. What’s more is that these requirements need to be fulfilled within prescribed legal frames, which means the CIPC will provide no further extensions.

Consequences of Non-Compliance

As of 1st December 2020, CIPC will enforce hefty penalties for all companies and close corporations that fail to comply with the requirements and deadlines concerned with annual returns filings. Companies and close corporations based in South Africa are strongly recommended to file their annual financial statements within the stated timeline to avoid incurring penalties and possible legal action.

To know more about the re-commencement notice concerned with regulatory compliance obligations, please refer to the CIPC website.

Follow the DataTracks blog @ https://www.datatracks.co.za/blog/ to remain up-to-date with the CIPC’s latest iXBRL filing requirements and amendments or speak to an expert @ +27-10-446-9061.

 

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