CIPC to revoke business permits mistakenly awarded, businesses face prosecution

CIPC to revoke business permits mistakenly awarded, businesses face prosecution

The Companies and Intellectual Property Commission (CIPC) says it has started the process of cancelling the certificates of companies not designated as essential services.

Open business door / Pexels
Open business door / Pexels

The CIPC discovered several businesses had fraudulently obtained certificates when they initially filed applications on the Bizportal website.


Spokesperson for the Department of Trade and Industry Sidwell Medupe says a large number of businesses had applied illicitly.


“As was made clear when the automated certificate was issued by the CIPC, that the provision thereof was based on information provided by the registered company itself, and that possession thereof does not in itself constitute the right to continue operating during the lockdown period.


“In terms of the applicable regulations during the lockdown, all businesses shall cease operations except for any business involved in the manufacturing, supply or provision of an essential service or goods,” Medupe explains.


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He adds businesses found guilty of wrongdoing will be taken to task.


“It is a criminal offence for any business to continue operating during the lockdown period if it is not providing an essential service. It is also a criminal offence for any business which misrepresents the nature of its operations in order to obtain a CIPC certificate.


“Businesses in the CIPC database that are not eligible to continue operations during the lockdown have had their certificates cancelled and will be handed over to the South African Police Services for further investigation and potential prosecution.”


Pubs, taverns, restaurants and fast food places are among those who applied for permits to operate during the lockdown, despite the regulations.

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