CIPC Backlogs and Necessary Actions

The Companies and Intellectual Property Commission (CIPC) has issued a Customer Notice 72 of 2024 about significant delays in processing several key services. These delays are linked to a surge in registrations, particularly for spaza shops, as part of a government directive. Accountants working with clients in these areas should plan accordingly.

What’s Happening?

CIPC is experiencing backlogs in the following services:

1. Foreigner Assurance (FAV) – Necessary for foreign nationals to file Beneficial Ownership Declarations.

2. Name Reservations – Required for new company registrations.

3. New Company Registrations – Especially for short standard private companies on the e-Services platform.

Current Turnaround Times

• Foreigner Assurance (FAV): 10–15 working days.

• Name Reservations: 5 working days.

• New Company Registrations: 5–10 working days.

Key Considerations for Accountants

1. Use BizPortal: For clients where all directors have South African IDs, BizPortal provides a faster registration process. Note that intermediaries cannot file through BizPortal.

2. Plan Ahead for Deadlines: Beneficial Ownership filings and Annual Returns must adhere to strict statutory deadlines. Late submissions will incur penalties, and CIPC cannot extend deadlines or waive fees.

3. Prepare Documents Carefully: Non-compliant or incomplete applications will be rejected and must be resubmitted, subject to standard processing times.

What to Tell Your Clients

• Encourage early preparation for Beneficial Ownership filings and Annual Returns.

• Highlight the possibility of registering a profit company without a name to expedite initial registration, with the option to add a name later.

Consequences of Non-Compliance

Submitting false or misleading information to CIPC is a criminal offense under Section 214 of the Companies Act. Ensure due diligence when preparing documents to avoid legal and financial repercussions.

Proactive planning and precise document preparation is essential to mitigate risks. Stay informed and compliant with CIBA.