by Teboho Seretlo
One of my passions and part of my business offerings is providing mentorship for businesses and to people who are not yet in business but considering starting what we often refer to as a “side-hustle”. Some of my mentees are still working a full time 9-5 job, and are looking for an extra source of income to augment their salaries, in these harsh economic times.
This need to start that side-hustle business, sometimes results in hastening to register a business with the Companies and Intellectual Property Commission(CIPC), a South African government agency that regulates businesses and intellectual property. Receiving a company registration number from the CIPC leaves one with a huge sense of accomplishment, and excitement. Registering a company with the CIPC is also a relatively quick and easy process.
However, the reality is, this comes with responsibilities for compliance, even if the company is not trading. These responsibilities include filing annual returns with the revenue services and with CIPC itself. The would-be-business owner, having registered without having a clear idea of their business model and intentions, forgets about this crucial part, until one day they receive an email from the revenue service asking them to submit their tax returns and charging them a penalty for non-compliance. Similarly, if the business does not file its CIPC annual returns, this attracts a penalty annually, until the CIPC starts a process of deregistering your company.
Earlier this year, the CIPC announced that nearly 800,000 companies face deregistration due to non-compliance, including failure to pay annual returns. This is a serious issue that could impact many small businesses, side hustles, and entrepreneurs who may not even be aware of the requirements.
So, I decided to write this small article to ensure that your business does not become one of those that end up being de-registered (while also hoping that it is not included in the 800,000 that are at risk of being deregistered.)
The following are some of the implications for your business should it get de-registered.
❌ Your business loses its legal status.
❌ Banks may freeze your company account.
❌ You could lose business opportunities requiring compliance.
❌ Reactivation can be costly and time-consuming.
To avoid de-registration, please
✅ Check your CIPC status online.
✅ Submit overdue annual returns as soon as possible.
✅ Ensure your company details are up to date. (otherwise all the notices of the commencement of the de-registration process will be sent to an outdated email address or cell number)
If you're running a small business or side hustle, compliance is not just admin—it’s about protecting your business!
I mentor small business owners and aspiring entrepreneurs, and I have seen how small oversights can create big roadblocks. If you’re unsure about your compliance status or need guidance, let’s talk!
Teboho Seretlo is the managing director and founder of Seretlo Investments (Pty) Ltd, a business support services consultancy which assists micro, small and medium enterprises with business intelligence support, business plans and investor pitch decks, funding applications, business cost optimization and business improvement processes. She also ran a franchised premium dry-cleaning outlet of her own for 5 years. She holds a BSc (Hons) in Maths from University of Fort Hare, Management Development Programme (MDP) from GIBS and an International Executive Development Programme (IEDP) GIBS & Rotterdam School of Management. She has over 25 years working experience with corporates such as Nedbank, Momentum, The Coca-Cola Company, SABreweries and Unilever, where she gained experience in a variety of disciplines including B-BBEE &transformation, financial management & budgeting, project management, decision-support, business strategy & analysis as well as research. She is passionate about gender issues and does volunteer work for women empowerment organisations.
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