Announcements


New Tax Calculator - Thursday, February 26, 2015
We have updated out Tax Calculator with the new tax rates as presented by Finance Minister Nhlanhla Nene on 25 February 2015, at 2pm.

Try the Free Online Tax Calculator today to see how the new budget affects your pocket! 
You are here > FAQs > Corporate Secretarial

Corporate secretarial FAQs

Companies


Q: How many names must I submit before the company can be formed?

Six names in descending order of preference need to be supplied. If the first name is not accepted then the next name is tested and so forth until either a name is accepted, or all names are rejected. A new list of six names would need to be submitted if all are rejected.


Q: What details are required on formation of a company?

At the inaugural shareholders meeting the shareholders of the company record the share capital (type of shares, value of each share, number of shares), select the year-end (the last day of the month that the company's financial year will end), the directors, the auditors, the public officer (this is the person who has been approved by the Commissioner and is the representative of the company), and the registered and postal addresses.


Q: What is the process of changing the company's auditor?

On the possible change of auditor the proposed auditor needs to communicate with the incumbent auditor to ensure there are no professional reasons which prevent the proposed change. Should clearance be given, the proposed and incumbent auditor as well as a company representative need to sign the form recording the change which needs to be forwarded to CIPC.


Q: Can I change the company's share capital?

The authorised share capital may be increased, decreased, split or consolidated to accommodate the structure required by the shareholders and directors of the company. The issued share capital may be changed by issuing new shares, buying back existing shares, splitting existing shares or consolidating existing shares.


Q: Can I change the company's year-end?

The current financial year-end may be changed, but can only be extended by six months or brought forward by six months. This cannot be done retrospectively - that is, after the year-end has already passed.


Q: What is annual duty and how is it calculated?

Annual duty is a charge by CIPC for the maintenance of each company's statutory records held by it. This is due by the end of the month following the anniversary of the month that the company was formed and is calculated on the turnover of the company as follows:

  • For a company with a turnover of less than R10 million - R450.00
  • For a company with a turnover of more than R10 million but less than R50 million - R2 500.00
  • For a company with a turnover of more than R50 million - R4 000.00

If the duty is not paid within the applicable month CIPC charges a penalty of R150.00. If the duty is outstanding for a period of six months CIPC will deregister the company.

Close corporation


Q: How many names must I submit before my close corporation can be formed?

Six names in descending order of preference need to be supplied. If the first name is not accepted then the next name is tested and so forth until either a name is accepted, or all names are rejected. A new list of six names would need to be submitted if none are accepted.


Q: What details are required on formation of a close corporation?

At the inaugural members meeting the members of the close corporation record the members’ contribution (the rand value of each member’s contribution as well as its percentage of the total expressed), select the year-end (the last day of the month that the close corporation's financial year will end), the members, the accounting officer, the public officer (this is the person who has been approved by the Commissioner and is the representative of the close corporation), and the registered and postal addresses.


Q: What is the process of changing the close corporation's accounting officer?

On the possible change of accounting officer, the proposed accounting officer needs to communicate with the incumbent accounting officer to ensure there are no professional reasons which prevent the proposed change. Should clearance be given, the proposed accounting officer as well as a company representative need to sign the form recording the change which needs to be forwarded to CIPC.


Q: What is annual duty and how is it calculated?

Annual duty is a charge by CIPC for the maintenance of each close corporation's statutory records held by it. This is due by the end of the month following the anniversary of the month that the close corporation was formed and is calculated on the turnover of the close corporation as follows:

  • For a close corporation with a turnover of less than R50 million - R100.00
  • For a close corporation with a turnover of more than R50 million - R4 000.00

If the duty is not paid within the applicable month, CIPC charges a penalty of R150.00. If the duty is outstanding for a period of six months, CIPC will deregister the close corporation.