CIPC Proceeds to Crack Down on Non-Compliant Companies
The Companies and Intellectual Property Commission (CIPC) issued various notices regarding the deregistration of companies that fail to meet their obligations under the Companies Act. On Friday, 17 January, the CIPC in a Media Statement yet again emphasised the problems experienced with submitting Annual Returns, declaring Beneficial Ownership, and adhering to other compliance requirements. Dormant companies are particularly at risk as they are often linked to illegal activities like money laundering.
The CIPC advises businesses to regularly check their status via BizPortal or e-Services. If flagged for deregistration, companies must urgently submit all outstanding Annual Returns and declarations to avoid penalties. For more details, consult the CIPC’s Practice Note 1 of 2022 on reinstatement requirements. Ensure your business complies to avoid these severe outcomes.
CIPC warned entities to file their returns due or face de-registration. On social media CIPC urged all entities once again to file annual returns by March 2025 following available guidance.
Consequences of Non-Compliance
Non-compliance can lead to serious consequences, such as directors being personally liable for debts, frozen bank accounts, and refusal of services from providers and creditors. Although reinstatement is possible, it requires proof of economic activity and is a time-intensive process. Directors and members must ensure compliance within 7 business days of this notice to avoid consequences, including:
Inability to transact with the CIPC.
Issuance of a compliance notice or administrative fines.
Possible deregistration.
Notices of BO non-compliance were issued electronically to the contact details of the active directors, company secretaries and members of close corporations.
Key Requirements
Ensure all BO declarations and securities registers are filed promptly.
Verify that CIPC holds correct and up-to-date contact details for directors, company secretaries, and members, as per Customer Notice 70 of 2018.
Read more
Read CIPC’s Media Statement for more detail.
Step-by-step filing instructions are available on the Beneficial Ownership section of the CIPC website.
