CIPC: Recommencement of referral for deregistration due to non-compliance with Annual Returns

CIPC: Recommencement of referral for deregistration due to non-compliance with Annual Returns

• 03 September 2024
• CIPC
• South African Accounting Academy

Customers are reminded that they need to comply timeously with the filing of Annual Returns (AR), Beneficial Ownership (BO) Declaration and AFS/FAS. Failure of which the company or CC will incur a penalty for the late filing as well as referral for deregistration if the non-compliance continues. They must also adhere to the content of all notices issued by the CIPC since time frames for compliance are clearly stated therein.

Customer must also take note, that further enhancements have been incorporated into the Annual Return Deregistration process and therefore, the period between referral for deregistration and final deregistration for non-compliance with Annual Returns will be drastically reduced as from 1 September 2024. This is to give effect to the CIPC mandate to maintain an up-to-date registry of companies and close corporations and to facilitate the efficient deregistration of companies and close corporations.

All notices relating to the referral for deregistration due to non-compliance with Annual Returns from 1 September 2024 will only be issued electronically to the contact details of the active directors, members and company secretary. Therefore, directors, members and company secretaries MUST ensure that CIPC always has their correct contact information, especially cell phone and e-mail addresses. Customers are also reminded that directors and members cannot share electronic contact details or use that of service providers – it must be that of their own. Directors and members are responsible for compliance with relevant legislation, and such cannot be negated or delegated to others, especially service providers.

Once finally deregistered, the company or close corporation may apply for re-instatement PROVIDED that it meets the requirements for re-instatement inter alia that it can provide proof that it had economic value at the time of deregistration – refer to the CIPC website for more information on the requirements for re-instatement.

As part of the enhancements, CIPC will be releasing a download functionality for such deregistration letters via e-Services and BizPortal platforms. The notice sets out in detail what must be noted on such download functionality.

Click here to download Notice 60 of 2024:

https://www.cipc.co.za/wp-content/uploads/2024/08/Notice-60.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.

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/customer letters issued by CIPC as the regulator.

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