The Companies and Intellectual Property Commission (CIPC) is set to de-register approximately 500,000 companies and close corporations for failing to comply with Annual Returns (AR) and Beneficial Ownership (BO) Declaration requirements.
The mass deregistration will begin early next week, following a formal notification issued in September 2024.
"This imminent deregistration follows Notice 60 of 2024, which notified companies that the CIPC has commenced the referral for AR deregistration and the steps to be taken to address the compliance issues," said the commission in a statement.
The move aims to maintain an accurate register of companies and curb criminal activities such as fraud, money laundering, and terror financing.
"This initiative will significantly aid South Africa in exiting the grey listing, as the Financial Action Task Force (FATF) mandates an up-to-date companies registry," the statement added.
Non-compliant entities have until the first week of December 2024 to rectify their status, with final de-registrations for outstanding cases expected by February or early March 2025. The CIPC emphasised that business owners must confirm their company status through the BizPortal website (www.bizportal.gov.za) or CIPC’s e-Services platform.
"Company owners will need to confirm the accuracy of their latest company information, assess their beneficial ownership, and prepare the necessary documentation for filing," the commission urged. Late filings will incur penalties, particularly for companies with arrears.
The CIPC highlighted the importance of compliance, stating that the process "not only aids in achieving an up-to-date registry but also contributes to a better business environment, improved decision-making, and efficient allocation of funds to those in need."
THE MERCURY
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