CIPC Deregistered 647 853 Non-Filing Entities in South Africa
The Companies and Intellectual Property Commission (CIPC) is South Africa’s regulatory body responsible for registering and regulating companies. CIPC follows an annual return deregistration process where it deregisters companies failing to comply with their annual return filing obligations. Recently, CIPC deregistered several entities in South Africa due to their non-compliance in filing annual returns on time.
Compliance Report Filing with CIPC
In accordance with the law, companies (including external companies) and close corporations must file their annual returns in the iXBRL format within 30 business days of their companies’ anniversaries with the Companies and Intellectual Property Commission (CIPC) annually.
It is necessary to lodge such annual returns in order to confirm whether a registered business is still operating or will be operating within the next few months.
In the event that annual returns are not filed within the prescribed time period or the consecutive 2 years, CIPC will see the business as inactive and begin the deregistration process to remove it from its active list.
CIPC’s Strike – Deregistering 647853 non-filing Entities in South Africa:
Following Notice 19 of 2023 to customers, CIPC has deregistered 647853 companies and close corporations in its recent annual return deregistration process. The deregistration process targeted entities that have been in the annual return deregistration process for more than three years and for which the notification process as per Companies Regulation 40 has been completed. The final deregistration took place on 30th March 2023.
Refer Notice: CUSTOMER NOTICE 20 OF 2023
The CIPC’s deregistration process aims to maintain an accurate and up-to-date corporate registry, ensuring that all active companies in South Africa comply with the necessary regulations. Due to the CIPC annual financial year shutdown, e-mail notifications of final deregistration began during the first week of April 2023.
Reinstatement of Companies and Close Corporations
Deregistered companies face various consequences, including loss of legal protection, inability to conduct business activities, and potential personal liability for directors and shareholders. The company or its stakeholders may need to follow specific reinstatement procedures and pay applicable fees to rectify the situation.
Companies and close corporations that have been finally deregistered can apply for reinstatement by referring to guidelines on the CIPC’s website under Enterprise Maintenance. Reinstatement of an entity requires submitting the necessary documents and fees and fulfilling any outstanding compliance requirements.
Next Steps for Companies in South Africa
CIPC’s massive deregistration move has sent a message to organisations that compliance with annual return filing requirements is vital. It urges all active entities to comply with the relevant regulations and file their annual returns on time. This helps prevent unnecessary deregistration and maintains a healthy business environment in the country.
An inability to comply with the CIPC iXBRL filing requirements can lead to the deregistration of your company. While you can reinstate your company, the process may seem daunting to some, requiring the settlement of fees and penalties and the submission of reinstatement applications and documents.
Bottom Line
In conclusion, the need for timely annual return submission cannot be taken for granted. To avoid company deregistration, companies and close corporations must adhere to the filing requirements laid out by CIPC. To know more about these requirements, refer to the CIPC’s website or contact an iXBRL expert at DataTracks.
DataTracks is a global compliance leader that has prepared more than 348,000 compliant reports for over 23,400 clients. The experts at the company have 18+ years of experience in creating reports that comply with the requirements laid out by the regulators. Partner with DataTracks TODAY to avoid consequences like deregistration! Contact an expert @ +27-10-446-9061 or e-mail enquiry@datatracks.co.za.