Even though the financial year of a company is usually a 12-month period, the same may not be true in all circumstances. In the case of a newly incorporated company, the financial statements are prepared from the date of incorporation to the year-end date. In the last instance, the financial year-end period may result in a year-end period of less than 12 months.
A company must have a financial year, ending on a date set out in the Company’s Notice of Incorporation.
The first financial year of a company a) begins on the date that the incorporation of the company is registered, as stated in its registration certificate; and (b) ends on the date set out in the Notice of Incorporation, which may not be more than 15 months after the date stated in (a) above.
The directors of a company may amend the financial year-end of a company at any time by submitting a CoR 25 notice of amendment application to the Companies and Intellectual Property Commission (“CIPC”) together with a signed resolution by the board of directors where the change in the financial year-end date was approved.
The requirements for the amendment of a company’s financial year-end as stipulated in the Companies Act N. 71 of 2008 (“the Act”) is:
If a company’s financial year ends on a Saturday or a Sunday of a particular year, then the financial year-end will be the next first official business day.
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