Gov't extends lifeline as 140,000 companies face the chop
Mbongeni Mguni | Friday June 5, 2020 15:58
By June 2, at least 65% or 143,000 companies were due to be terminated as a result of their failure to migrate to the Online Business Registration System (OBRS). By last Friday, ahead of the deadline, sources close to the Companies and Intellectual Property Authority (CIPA) told BusinessWeek that a large number of companies had failed to migrate, meaning their registrations would be terminated.
At the time, CIPA officials declined to estimate the level of participation in the OBRS or discuss whether the June 2 deadline would be extended. All companies in Botswana had 12 months to June 2 to migrate to the new online platform or risk deregistration, as part of government’s efforts to plug money laundering loopholes and also enhance the ease of doing business.
Last Sunday, Investment, Trade and Industry minister, Peggy Serame confirmed the numbers involved in the migration and said government believed the coronavirus (COVID-19) lockdown and movement restrictions had also played an adverse role.
“We had a target of reregistering about 60% within that 12 months, but we have only managed 35%,” she told a media briefing.
“We agreed with CIPA that let’s extend the deadline for re-registration of companies and business names to December 2.
“There’s that opportunity for those that had not to go and do so. “Let’s not wait for December but do so now, because we are not going to increase that period.”
Players in the registration and secretaries sector welcomed the extension and urged companies to come forward for assistance in migrating online ahead of the new deadline. Grant Thornton head of corporate services, Aparna Vijay cautioned that re-registration was a prerequisite to accessing the BURS’ new online system used to file company taxes and complete other tax related activities.
“The extension is a gesture by CIPA that we welcome during this testing time,” she said. “I do, however, urge business owners to act fast to get their companies and business names re-registered online at the earliest. “The online system facilitates ease of submission of annual returns, renewal of business names, etc. and is a measure that has increased the ease of doing business in Botswana.”
Company registration experts previously told BusinessWeek that while active companies had largely responded to the original yearlong migration, the majority of semi-active or dormant companies had chosen to let the deadline lapse.
Companies not on the OBRS after December 2 will also give up their right to their names, allowing anyone to snap up their names, brands and gain whatever value comes with them.