BIPA Begins Deregistration of Non-Compliant Business Entities
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The Business and Intellectual Property Authority (BIPA) has formally commenced a mass deregistration process targeting entities that have failed to comply with the legal requirement to file their beneficial ownership information. This was communicated in Public Notice 21 of 2025: B.
This action follows the obligations introduced on 21 July 2023 under the Companies Act (2004, as amended) and the Close Corporations Act (1988, as amended). All companies and close corporations were required to maintain and submit their beneficial ownership details to BIPA. Entities that failed to comply were placed on the “inactive list” from 12 March 2024, and after six months without corrective action, became eligible for deregistration. If no corrective action is taken within the six months following, those entities are subject to automatic deregistration and removal from the official register. Once deregistered, a company ceases to exist as a legal person.
As of 29 August 2025, BIPA confirmed that deregistration will proceed. The process will be conducted in phases, with affected stakeholders notified as each group of entities is removed from the register.
Consequences of Deregistration
BIPA outlines several serious implications for entities that are deregistered:
Loss of Legal Status – The entity no longer exists in law and cannot own property, enter contracts, or participate in legal actions.
Asset Risks – Assets in the entity’s name may revert to the State if not recovered through formal restoration.
Contractual Impact – Existing contracts may become void, and participation in public procurement may be affected.
Banking Restrictions – Business bank accounts may be frozen or closed, limiting financial operations.
Reputational Damage – Being publicly listed as deregistered may impact credibility and trust.
Restoration Requirements – Reinstating a deregistered entity requires a formal application and full compliance with all outstanding obligations.
Legal Authority
The deregistration process is carried out under the authority of:
The Companies Act 28 of 2004
The Close Corporations Act 26 of 1988
The Business and Intellectual Property Authority Act 8 of 2016, which empowers BIPA to enforce compliance with applicable legislation.
Effective Date
This directive is effective immediately upon publication and applies to all entities listed in the notice. All companies and close corporations must review their compliance status and ensure that their beneficial ownership information is filed and up to date.
More Information
Read more on beneficial ownership reporting requirements on the BIPA website. Download the BIPA Beneficial Ownership FAQ and the Presentation by BIPA for more information.
Staying compliant is critical to protecting your and your clients’ business operations, assets, and legal standing.
