of non-compliance – penalties, legal fees and director liability – the most recent annual report of the Companies and Intellectual Property Commission states that 72% of the 3.1 million companies in South Africa don’t submit annual returns and therefore don’t meet basic legal requirements.
The CIPC recently deregistered more than 640 000 companies for failing to file annual returns. It also announced that companies must submit information about their beneficial ownership by 1 October 2023, adding to an already complex situation.Companies can meet their obligations by using the CIPC’s website, but they generally use company secretarial services provided by professionals. These services can be costly, which is a factor in the low level of compliance.