Creating a company – Beware of non-compliance!

by | May 25, 2018 | Advisory Services

In today’s technologically advanced world you can have a company registered in South Africa within a week on the Companies and Intellectual Property Commissions’ (CIPC) website. Sounds easy enough right? If you don’t have an in-depth knowledge of the Companies Act No. 71 of 2008, think again.

The Companies Act puts a lot of emphasis on compliance, specifically as it relates to Company Administration, and there could be some unwanted consequences for not keeping up with legislative requirements. Imagine the following scenario: you have Share Portfolios or fixed property in the name of a company. No Company Administration / compliance was done and the Companies and Intellectual Properties Commission (CIPC) deregisters the company due to Annual Returns not being filed. What now?

With all the recent restructuring entered into by clients and even the registration of new companies in order to facilitate a restructure, it has become evident that there is a material lack of compliance on the requirements of ongoing administration for these company structures. Never assume that your company is compliant, simply because the Company is wholly-owned by a Trust or perhaps that the only form of compliance worth considering is income tax.

A Company is a completely separate legal entity with its own time-consuming compliance requirements and can’t, and shouldn’t, be thrown into the same hat as your trust.

We, at Sentinel International Advisory Services have compliance officers who can maintain this compliance for your company at an agreed fee. This includes but isn’t limited to:

  • Tax and Accounting
  • Annual Filing Returns on CIPC
  • Drafting of Resolutions
  • Drafting of Minutes for Annual General Meeting of the Board of Directors
  • Issuing of Share Certificates and update of Share Register

Please make contact with us to find out if your company is compliant.