CIPC: Delays in processing re-instatement applications and common causes for non-processing

CIPC: Delays in processing re-instatement applications and common causes for non-processing

• 12 July 2024
• CIPC
• South African Accounting Academy

The incoming volume of applications is still high, and this is being exasperated by multiple submissions by customers and non-adherence to document and process requirements. The high incoming volumes are further affected by customers sending enquiries to processing mailboxes.

The processing mailbox [email protected] is strictly dedicated to the processing of re-instatement applications (Form CoR40.5 and re-instatement court orders). We kindly request that customers do not send any general enquiries or other applications to this mailbox.

For any enquiries, please refer to the notice “CIPC enquiries system not available – alternative processes” published on 19 March 2024. This will ensure that your query is directed to the correct department for assistance.

The notice also provides some common causes for non-processing that customers should be aware of:

• To ensure the successful tracking of your application, please ensure you have sufficient funds (R200) available in the indicated customer code on the CoR40.5 form.
• Ensure that the customer code is clear and legible.
• When submitting your application, please ensure that all attachments are in PDF format (not WinZip, Word, Excel, JPEG, or other emails etc.) and included in a single email. We are unable to download attachments from links or other websites.
• Ensure that your scanned attachments are of good quality and legible for processing.
• If the application is being submitted by a representative on behalf of the company or close corporation, please include a valid mandate document.
• Include sufficient documentary proof to prove that the company or close corporation was in business, had outstanding assets or liabilities, or had any other economic value. Examples of acceptable proof include bank statements, deed search, intellectual property registrations, share certificates, outstanding tax notifications, lease agreements, and asset ownership documents.

Customers are urged to ensure that their application meets all process and document requirements before submitting to [email protected] with all attachments in PDF format and as a single e-mail.

Once customers have received confirmation that their re-instatement application has been processed, they should continue to file all outstanding Annual Returns, Beneficial Ownership Declarations, and Financial Statements/Annual Financial Statements via either www.bizportal.gov.za or annualreturns.cipc.co.za.

Click here to download Notice 46 of 2024:

https://www.cipc.co.za/wp-content/uploads/2024/07/Delay-in-Re-instatements_July-2024_v1.1.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 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 and that you are aware of the latest media statements issued by CIPC as the regulator.
• Company Secretarial staff play a critical role in bridging the gap between entities and CIPC. As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for companies and company secretarial practitioners to keep abreast of such changes in so that companies continue to meet their compliance obligations.

Relevance to Your Clients:

• An entity (company or close corporation) has a duty to comply with the Companies Act, and all relevant notices/enforcements/practice notes and to be aware of the latest media statements issued by CIPC as the regulator.

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