CIPC news summary April 2024
1. New Procedures for Updating CIPC Customer Codes
The Companies and Intellectual Property Commission (CIPC) has implemented new procedures for updating customer codes, affecting individual customers and companies. Here’s what accountants need to know to assist their clients with these updates:
Individual Customer Code Update:
If your client's customer code is linked to an outdated email or both email and cell phone numbers are outdated, the update process involves:
Sending an email from the new email address (to be linked with the customer code) to resetpassword@cipc.co.za.
Attaching the completed "Customer Update Form" which can be downloaded from the CIPC website.
Including a certified copy of the ID, which must not be older than 3 months.
Company Customer Code Update:
For companies experiencing changes in personnel, such as a Company Secretary or relevant staff member resigning and a new appointment being made, the following documents are required:
Certified ID copy of the new Company Secretary or staff member.
Certified ID copy or resignation letter of the previous Company Secretary.
An affidavit from the CEO/Director/Manager confirming the resignation and asserting the company's ownership of the customer code.
A certified ID copy of the CEO/Director/Manager who signed the affidavit.
The completed "Customer Code Update Form," available on the CIPC website.
All these documents should be sent to resetpassword@cipc.co.za from the new email address linked to the company’s customer code.
Consolidation of Multiple Customer Codes:
If your client has multiple customer codes with balances, they can consolidate them into a single active code by:
Sending an email to revenue@cipc.co.za with a narrative of the issue, the preferred customer code, the customer's name and surname, and proof of deposits made into the dormant code.
Including a letter on a company letterhead requesting the fund transfer and confirming which code it should be transferred to.
Attaching a certified identity copy of the code owner.
After receiving email confirmation of the fund transfer, send a final email to resetpassword@cipc.co.za to update the customer details. Attach a certified identity copy of the owner and the "Customer Code Update Form."
Final Steps:
Once the email linked to the customer code is updated, verification of the customer code is required under the new "Customer Verification Process" (Notice 18 of 2024 dated 4 March 2024).
2. CIPC System Update: Resolved Verification Issues
The CIPC has updated its system, resolving most issues related to customer verification. Customers are encouraged to log in again at https://eservices/cipc.co.za to verify their profiles. If problems persist, customers should email enquiries@cipc.co.za with their customer code in the subject line. Include a screenshot showing all populated fields and error messages to help CIPC provide effective assistance.
Remember, the enquiries@cipc.co.za email is specifically for verification-related queries. For other inquiries, refer to the notice “Update CIPC enquiries system not available – alternative processes” on the CIPC website at www.cipc.co.za for appropriate contact details of different units.
3. CIPC Reminder on Annual Financial Statements Compliance – Notice 26 of 2024
The Companies Act of 2008, under Section 30(1) requires companies to prepare and approve their AFS within six months after their financial year ends. This includes auditing the AFS for public and state-owned companies and other specified companies and having them independently reviewed where required. Many companies have been found non-compliant with these requirements. Failure to adhere can lead to investigations and the possible imposition of administrative penalties and a negative compliance record as per Section 171 of the Act. Companies must ensure timely preparation of their financial statements to avoid these consequences.
4. Delays for Re-instatement Applications - CIPC Notice 34 of 2024
There are substantial delays noted in the processing of re-instatement applications (Form CoR 40.5) as outlined in CIPC Notice 34, which also refers back to Notice 9 of 2024 for alternative communication channels.
The processing delays are blamed on the high volume of new applications and unintentional resubmissions. The indexing of incoming applications is current, and the focus is now shifting towards capturing and finalising applications in the queue.
The new turnaround times are expected to be:
Re-instatement Applications: 15 working days from the date of tracking.
Re-instatement Enquiries: The service standard is 15 working days from the receipt of an enquiry at enqreinstatements@cipc.co.za.
5. CIPC Announces Changes to Reinstatement Processes for Companies and Close Corporations – CIPC Notice 36 of 2024.
The Companies and Intellectual Property Commission (CIPC) has updated its procedures for reinstatement applications (Form CoR 40.5) and related enquiries. Due to efforts to streamline operations, CIPC has achieved significant progress in reducing the processing time for reinstatement applications, which is now down to 5–6 working days from the previous 15 working days.
Accountants and relevant parties are advised to adhere to new instructions to avoid processing delays and duplications. Specifically, the CIPC requests that customers:
Do not resend applications or include the reinstatements email (reinstatements@cipc.co.za) when making enquiries to the dedicated email (enqreinstatements@cipc.co.za). This practice previously created duplicate or triplicate applications in the system.
Direct all reinstatement-related enquiries to enqreinstatements@cipc.co.za without copying other mailboxes to prevent creating duplicate enquiries which could delay processing.
If you have unanswered enquiries that was sent to enqreinstatements@cipc.co.za on or before 30 April 2024, you need to resend these to ensure they are addressed under the revised timelines.
6. Avoid rejection of Insolvent Voluntary Liquidations - CIPC Notice 34 of 2024
New critical update for the filing of CM100 applications concerning insolvent voluntary liquidations. Effective immediately, all CM100 submissions, accompanied by Form CM26Liq for companies and close corporations initiating liquidation, must adhere to detailed guidelines as stated in Customer Notice 34 of 2024. This includes fully completed forms, proper commissioning by a traceable Commissioner of Oaths, and detailed Statements of Affairs. Additionally, all provided information must accurately reflect liabilities and assets to facilitate the appointment of qualified liquidators.
Failure to meet these standards will result in the rejection of the application. Moreover, submitting false or misleading information on the CM100 is a criminal offence under Section 214 of the Companies Act, 2008, and may lead to prosecution.
