CIPC to deregister over 500 000 companies for non-compliance

The Companies and Intellectual Property Commission (CIPC) is set to deregister over 500 000 companies and close corporations for failing to file Annual Returns and Beneficial Ownership declarations.

The CIPC is responsible for maintaining an up-to-date register of companies and close corporations.

In a statement, the business regulator says this follows a notice issued in September, warning of the consequences of non-compliance. It says it will refer the remaining non-compliant companies and close corporations for Annual Return Deregistration and, eventually, for final deregistration.

The CIPC adds that the referral for deregistration will be within the first week of next month, and final deregistration for companies or corporations that remain non-compliant will take place at the end of February or early March next year.

CIPC Commissioner Rory Voller says companies must comply with legislative requirements.

“It’s a legislative requirement. What the law says is that you need to keep your company or your close corporation compliant by lodging what is called an annual return. It’s basically the information of the company to the regulator, telling them that either X-has changed or Y-has changed, or nothing has changed – and we give you a grace period of two- years, in order for you to make sure that those returns are filed with the CIPC. You’re supposed to do it annually. We only start a deregistration process if you fail to file after two years. So, it is basically a legislative requirement in order for you to file those returns,” adds Voller.

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