How much should year PTY LTD audits cost?

[HavocXphere]

So essentially, if the company is small enough I might not have to throw money at auditors.

That is the theory. In practice the banks might want audited financial statements for loans etc.

You're getting a wide range of estimates because it depends very much on the nature of the company. e.g. If its just a passive entity that holds property then its not a lot of work. Couple of contracts & bank statements. A company doing cross border business w/ lots of employees etc is more work...even if the turnover is the same.

 

[Geriatrix]

1. If your CC is registered already why make the move?

2. Why not just be a sole proprietor?

Hard to help without knowing more info.

Info is in the thread.

1. Don't have a cc
2. At least 3 shareholders.

That is the theory. In practice the banks might want audited financial statements for loans etc.

You're getting a wide range of estimates because it depends very much on the nature of the company. e.g. If its just a passive entity that holds property then its not a lot of work. Couple of contracts & bank statements. A company doing cross border business w/ lots of employees etc is more work...even if the turnover is the same.

It'll be a holding company. It'll buy shares once in a while and might buy a property or two. Just one extra employee if it is even necessary.

 

[semaj]

It sounds like your company will have a PIS of less than 100 and with only 3 shareholders will also likely be owner managed. In this case no outside professional assistance and therefore no audit will be required until your PIS increases past 100.

 

[Pitbull]

Info is in the thread.

1. Don't have a cc
2. At least 3 shareholders.


It'll be a holding company. It'll buy shares once in a while and might buy a property or two. Just one extra employee if it is even necessary.

I was only reading the OP. And based my response on that.

 

[Geriatrix]

It sounds like your company will have a PIS of less than 100 and with only 3 shareholders will also likely be owner managed. In this case no outside professional assistance and therefore no audit will be required until your PIS increases past 100.

Ok cool. So how would this work exactly? Do you have a link or something that explain how the whole process would work? Who would I need to show that my PIS score is under a 100? How do I prove it? How would I report the PTY LTDs financial situation each year?

 

[semaj]

Your PIS score is the sum of the following:
- 1 point per million rand of turnover
- 1 point per employee
- 1 point per million rand of third party debt
- 1 point per shareholder

This site will calculate your PIS and tell you what is required in terms of audit.

You will still need to file financial statements every year and probably will need to provide some kind of PIS calculation to justify that they haven't been audited or reviewed.