In a recent media statement, the Companies and Intellectual Property Commission (‘CIPC’), a regulatory body responsible for the registration and regulation of companies, co-operatives, and intellectual property rights, confirmed that it intends to deregister more than 500 000 companies and close corporations for failing to submit their Annual Returns (‘AR’) and Beneficial Ownership Declarations.
CIPC’s mass deregistration plan, which commenced last week, follows the formal issuing of Notice 60 of 2024 in September. In addition to warning entities of the levying of penalties for late filing, the Notice further stipulated that CIPC would commence with referrals for AR deregistration to address non-compliance.
Pursuant to CIPC’s duty to maintain an up-to-date register of companies and close corporations, deregistration plays a key role in facilitating this process and ensuring an accurate companies registry. Ultimately, this enhances the business environment and enables better decision-making and the efficient distribution of funds to those requiring assistance.
Additionally, the move intends to suppress criminal activities targeting active and dormant entities for fraud, money laundering, and the financing of terrorist enterprises. To that end, the initiative will meaningfully contribute to facilitating South Africa’s removal from the grey list given that the Financial Action Task Force requires members to ensure a national up-to-date companies register.
With referrals for AR deregistration taking place this month, final deregistration for any remaining non-compliant companies and close corporations is scheduled for the end of February or early March 2025. Accordingly, companies and close corporations are required to confirm their status via CIPC’s BizPortal website. Companies which have not complied with their AR obligations, or have been referred for AR deregistration, must submit all outstanding ARs and update their information concerning beneficial ownership, the details of which may be accessed via CIPC’s e-Services platform.
To consult with a commercial law attorney with extensive experience in company law, contact commercial@stbb.co.za.
