More than 141,000 businesses in Namibia are at risk of being deregistered after the Business and Intellectual Property Authority (BIPA) began a phased process to remove entities that have failed to comply with statutory beneficial ownership (BO) disclosure requirements.
The BO disclosure obligation, which came into effect in July 2023, was introduced through amendments to the Companies Act, 2004, and the Close Corporations Act, 1988.
It aligns Namibia with global anti-money laundering standards set by the Financial Action Task Force (FATF), an intergovernmental organisation promoting transparency and combating illicit financial activity.
“A significant number of approximately one hundred and forty-one thousand (141,000) entities have yet to fulfil their beneficial ownership obligations and are consequently at risk of being deregistered,” said Ainna Kaundu, Acting Chief Executive Officer of BIPA.
According to Kaundu, the directive follows months of public awareness efforts aimed at educating businesses on their compliance responsibilities.
“Since the legislation came into force, BIPA has undertaken extensive awareness campaigns using various media platforms and nationwide outreach programmes,” she said.
In a directive issued on 11 April 2025, BIPA warned that all non-compliant entities would face deregistration from 16 May 2025 unless they complied by the stated deadline.
Kaundu explained that the deregistration process would follow a prescribed legal procedure: “Non-compliant entities will be placed on an Inactive List. If they remain non-compliant for at least six months, they will be deregistered in accordance with the law.”
She warned that deregistration could result in serious financial and legal repercussions for affected businesses.
“We urgently advise all businesses, particularly those holding assets such as immovable property under their entity’s name, to rectify their compliance status without delay. Failure to do so will result in deregistration, and ownership of assets held by the deregistered entity may ultimately vest in the State,” Kaundu said.
She further noted that the implications extend beyond asset forfeiture.
“Deregistration can lead to the loss of existing contracts, especially those related to public procurement, the closure or restriction of business bank accounts, and a loss of investor confidence,” Kaundu said.
“Entities involved in ongoing litigation may also face increased legal risks. Given the severe and far-reaching implications of deregistration, we appeal to all non-compliant entities to immediately submit their beneficial ownership information and ensure compliance.”
