The Business and Intellectual Property Authority (BIPA) has announced that it has begun deregistering businesses which are not in compliance with the statutory beneficial ownership (BO) disclosure requirements.

A statement released by BIPA on Friday said the obligation of the Beneficial Ownership Declaration was established through amendments to the Companies Act of 2004 and the Close Corporation Act of 1998, and took effect in July 2023.

Prior to the announcement, BIPA carried out large-scale public awareness campaigns that employed various media channels and nationwide outreach programmes to inform business owners of their new compliance obligations.

“In a directive issued on 11 April 2025, BIPA notified all non-compliant entities of the risk of deregistration, effective from 16 May 2025, if they fail to comply by this deadline,” the statement noted.

About 141 000 organisations face the risk of deregistration due to their failure to comply with the beneficial ownership obligation.

“Deregistration carries substantial legal and financial ramifications for both the entity and its associated interests,” the statement warned. “Deregistration can lead to adverse consequences, including the potential loss of existing contracts, especially those related to public procurement, possible restrictions or closure of business bank accounts, deterrence to potential investment, and increased vulnerability to legal challenges, particularly for entities involved in ongoing litigation,” the statement stressed.

“Given the severe and far-reaching implications of deregistration, BIPA reiterates its urgent appeal to all non-compliant businesses to immediately submit their beneficial ownership information, and ensure compliance,” the statement detailed.

– Nampa