CIPC: Delay in processing company and CC reinstatement applications process and related inquiries

CIPC: Delay in processing company and CC reinstatement applications process and related inquiries

• 26 February 2024
• CIPC
• South African Accounting Academy

Due to the final deregistration of companies and close corporation for non-compliance with Annual Returns during January 2024, high volumes of reinstatement applications (form CoR 40.5), and inquiries relating to deregistrations, and reinstatements are experienced.

Due to these high volumes CIPC will not be able to adhere to the below service standards: –

• Company and Close Corporation reinstatement applications (service standard is 3 working days from date of tracking);

• Company and Close Corporation Deregistration Enquiries (service standard is 5 working days from logging the inquiry); and

• Company and Close Corporation Reinstatement Enquiries (service standard is 5 working days from logging the inquiry).

CIPC understands that your business is important to you and that you would like to reinstate your business as quickly as possible, but you are advised that a delay will be experienced. Kindly expect the following delays: –

• Company and Close Corporation reinstatement applications (10 working days from date of tracking);

• Company and Close Corporation Deregistration Enquiries (service standard is 10 working days from logging the inquiry); and

• Company and Close Corporation Reinstatement Enquiries (service standard is 10 working days from logging the inquiry).

CIPC has apologized for the inconvenience caused and is attending to these matters as quickly as possible.

Click here to download Notice 9 of 2024:

https://www.cipc.co.za/wp-content/uploads/2024/02/Notice_Delay-in-Re-instatements_v1.0.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• The Companies Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (Non-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.

• As an auditor, independent reviewer and accountant, you also need to monitor your client’s compliance with the Companies Act and all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.

• Where you perform these compliance tasks on behalf of your client, you need to ensure that you comply with all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.

• You should be especially aware of expected delays experienced by CIPC – e.g. in the re-instatement and query process that follows the deregistration of companies and CCs in January 2024.

Relevance to Your Clients:

• An entity (company or close corporation) must comply with the Companies Act, and all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.

• Clients should be especially aware of expected delays experienced by CIPC.

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