Financial Statements for PTY Ltd Companies in South Africa

Every PTY Ltd company in South Africa must prepare annual financial statements within six months of its financial year-end, as required by the Companies Act 71 of 2008. The level of assurance required — full audit, independent review, or compilation — depends on your company's Public Interest Score (PI Score).

The PI Score is calculated by adding: number of employees, third-party liabilities (in rand millions), turnover (in rand millions), and number of shareholders. If your PI Score is 350 or above, a full audit is required. Between 100 and 349, an independent review is required. Below 100, financial statements must still be prepared but do not need an audit or review — however, the company's MOI may impose additional requirements.

Most small PTY Ltd companies fall below the audit threshold but must still prepare financial statements in accordance with an appropriate financial reporting framework — typically IFRS for SMEs. These statements must be approved by the board of directors and made available to shareholders at the AGM (or circulated if no AGM is held). Even if an audit is not required, well-prepared financial statements are essential for tax returns, bank applications, and investor confidence.