Due Diligence Form Template for South Africa

A Due Diligence Form helps businesses and investors thoroughly check potential partners or investments before making important decisions. It's a structured checklist that covers key areas like financial records, compliance with South African Companies Act requirements, BEE status, and operational risks.

Local companies use these forms to document their investigation process, protect themselves legally, and meet regulatory obligations. The form typically includes sections about tax compliance, CIPC registration status, financial statements, and other critical business information. It serves as proof that an organization took reasonable steps to verify important facts before entering into significant transactions.

Use a Due Diligence Form when investigating potential business partners, merger targets, or major investments in South Africa. It's essential before signing contracts with new suppliers, acquiring companies, or entering joint ventures. The form becomes particularly important when dealing with high-value transactions or partners who'll have access to sensitive information.

The timing matters most during the early stages of significant business decisions - before making financial commitments or sharing confidential data. Many companies complete these forms when vetting BEE partners, checking CIPC compliance of potential contractors, or exploring opportunities that could impact their regulatory standing with bodies like the JSE or FSCA.

• Financial Due Diligence Forms: Focus on company financials, tax compliance, and audit history - commonly used for mergers and acquisitions
• Legal Due Diligence Forms: Cover regulatory compliance, litigation history, and contractual obligations under South African law
• Operational Due Diligence Forms: Examine business processes, BEE status, and operational risks
• Technical Due Diligence Forms: Assess IT systems, intellectual property, and technical capabilities
• Environmental Due Diligence Forms: Review environmental compliance and impact assessments per local regulations

• Corporate Legal Teams: Draft and review Due Diligence Forms, ensuring compliance with South African regulations and company policies
• Investment Firms: Use these forms to evaluate potential investments and partnerships, particularly for JSE-listed companies
• Business Development Officers: Complete forms when exploring new business relationships or expansion opportunities
• External Auditors: Review and verify information provided in the forms during formal due diligence processes
• Company Directors: Sign off on completed forms and take responsibility for accuracy under the Companies Act

• Company Information: Gather CIPC registration details, shareholder structure, and BEE certificates of the target entity
• Financial Records: Collect past three years' financial statements, tax clearance certificates, and major contracts
• Legal Status: Document pending litigation, regulatory compliance records, and intellectual property rights
• Operational Details: List key assets, employee information, and business licenses
• Risk Assessment: Our platform helps generate comprehensive Due Diligence Forms tailored to your specific industry and compliance needs

• Identification Section: Details of both investigating and target entities, including registration numbers and BEE status
• Scope Declaration: Clear outline of investigation parameters and time frames under South African law
• Confidentiality Clause: POPIA-compliant terms for handling sensitive business information
• Verification Statement: Confirmation of information accuracy and completeness by authorized representatives
• Compliance Checklist: Key regulatory requirements, including Companies Act and sector-specific regulations
• Signature Block: Space for authorized signatories, witnesses, and company details as required by local law

A Due Diligence Form differs significantly from a Due Diligence Checklist in several important ways, though they're often confused in South African business practice. While both support investigation processes, their functions and legal weight vary considerably.

• Legal Status: Due Diligence Forms are formal legal documents that create binding obligations, while checklists serve as internal guidance tools without direct legal effect
• Scope and Detail: Forms capture specific findings and declarations about a target company, while checklists outline investigation steps and requirements
• Evidentiary Value: Forms provide documented proof of investigations for regulatory compliance, while checklists mainly track process completion
• Usage Context: Forms are submitted to external parties and regulators, while checklists typically remain internal working documents