Re-instatement requirements clarified by CIPC

20 January 2022
Legal and Compliance
South African Accounting Academy

In order to re-instate a company or a CC from 1 January 2022, the re-instatement application Form Cor40.5 must be accompanied by specified documents – regardless of the cause or date of final deregistration.

Upon the successful processing of the re-instatement application, all outstanding Annual Returns must be filed in order to complete the process. If the company or CC fails to file all outstanding Annual Returns within 30 business days from the date of re-instatement, the company or CC will be finally deregistered again without any further notification.

Note that Practice note 8 of 2017 is hereby withdrawn as from 1 January 2022 and replaced with this Practice note 1 of 2022.

Click here to download the Practice Note:

http://www.cipc.co.za/files/5616/3905/0928/Practice_Note_1_of_2022.pdf

How does this affect you and your clients?

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, you also need to monitor your client’s compliance with the Companies Act and all relevant notices/enforcements issued by CIPC as the regulator.

Relevance to Your clients:

This CIPC practice note clarifies certain operational issues that must be complied with.

The client has a duty to comply with the Companies Act, as well as relevant notices/enforcements published by the Regulator.

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