The Business and Intellectual Property Authority (BIPA) will begin removing 1,000 companies from its register each month as part of a major compliance campaign to erase more than 137,000 non-compliant entities.
The first deregistrations will take place on 29 August, in what BIPA says is a long-overdue clean-up of its books.
Of the 229,000 entities ever registered, only 84,000 remain compliant with the legal requirement to declare their beneficial ownership.
BIPA’s Manager of Client Management Services, Romancia Shoonga, said the exercise would be carried out in stages.
“The deregistration will be carried out in phases, with 1,000 companies removed at every instance,” she told The Brief.
She warned that deregistration has serious consequences.
“Once deregistered, a company no longer exists in the eyes of the law. All its accounts, contracts, and registrations are automatically nullified,” she said.
Shoonga explained that struck-off companies cannot trade, open bank accounts, hold property, or enter into valid agreements. “Its business life ends immediately,” she added.
The names of deregistered companies will be listed on BIPA’s website, and penalties may still apply to directors and members. Shoonga noted that many failures to comply were due to ignorance, the death of directors, or the mistaken belief that dormant companies had no obligations.
For those wishing to return to the register, BIPA has provided a pathway, but Shoonga stressed it will not be simple.
“Restoration is possible, but only with full compliance to the Companies and Close Corporations Act,” she said.
Companies seeking reinstatement must settle all outstanding returns, pay annual duties and submit the required beneficial ownership declarations before applying.
“This is a strict process,” Shoonga said.
