CIPC: Delays in Company and Close Corporation Re-instatements [d751d9]

Posted 08 July 2025 Written by Acts Online
Category Company Law

Brought to you by SA Accounting Academy: In terms of the Companies Act, No. 71 of 2008, the Companies and Intellectual Property Commission (CIPC) has issued a formal notice acknowledging significant delays in the processing of re-instatement applications for companies and close corporations.

The CIPC confirmed that the current backlog affects entities that were finally deregistered as a result of non-compliance with Annual Return filings and Beneficial Ownership Declarations. While system enhancements to legacy applications were implemented in April 2025 to improve efficiency, several external and internal factors have hindered progress.

The Commission identified the following primary causes for the current processing delays:

  • Recent disruptions to underwater internet cables affecting connectivity;
  • Sustained high volumes of incoming re-instatement applications;
  • Poor quality of submissions which require manual intervention or rejection; and
  • The implementation of new system safeguards designed to ensure data integrity.

The CIPC is currently developing a fully online re-instatement process intended to automate and stabilise the environment. In the interim, practitioners are urged to ensure that all submissions are complete and accurate to prevent further administrative bottlenecks.

Click here to download the CIPC Notice on Re-instatement Delays (July 2025).

What this means for you, your business, or your clients

  • For yourself: You must manage professional liability and expectations by documenting the CIPC’s acknowledged delays when advising on timelines for restoring deregistered entities.
  • For your business: Your practice should review pending re-instatement files to ensure all Beneficial Ownership Declarations are compliant, as poor submission quality is cited as a primary cause for further delays.
  • For your clients: Clients must be informed that until the re-instatement is finalised, the entity remains legally deregistered, which may prevent them from entering into contracts, disposing of property, or operating business bank accounts.

Originally published at https://accountingacademy.co.za/news/read/cipc-delays-in-company-and-close-corporation-re-instatements-update

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