Bipa: 1 000 entities to be deregistered per month
Process underway
During the process, more than 137 000 companies and close corporations that did not meet the requirements will be deregistered.
The process of deregistering the first 1 000 entities that failed to comply with the statutory requirements for the disclosure of beneficial owners began on Friday.The Business and Intellectual Property Authority (Bipa) confirmed this last week.
Bipa’s acting CEO, Ainna Kaundu, said during a media briefing on Thursday that the process would see more than 137 000 companies and close corporations that did not comply with the requirements deregistered.
A beneficial owner is a person who directly or indirectly exercises effective control over a company.
Bipa will then remove an additional 1 000 entities each month until the full list of 137 000 is clean.
“This marks the beginning of consequences management,” Kaundu said.
“Since 2023, when the Companies Act and the Close Corporations Act were amended to introduce disclosure of beneficial ownership, we have been communicating extensively with stakeholders. The time for awareness is over – now we are enforcing the law.”
Why is it important?
Disclosure of beneficial ownership is designed to shed light on who really controls Namibian companies and close corporations.
The law requires all entities to declare their true owners or directors, a measure aimed at combating money laundering, the financing of terrorism and hidden ownership structures.
Kaundu stressed that full compliance is essential to building trust and transparency in Namibia’s business environment.
Entities that have ignored repeated notices have already been placed on an “inactive list”, which has resulted in banking restrictions such as frozen accounts. By law, Bipa must deregister entities six months after they are listed as inactive.
Kaundu compared deregistration to the issuance of a “death certificate for businesses”.
Once entities are struck off the register, they lose their legal status, preventing them from owning property, entering into contracts or participating in court proceedings. Assets registered in the name of these entities will be forfeited to the state, while existing contracts risk being declared null and void.
The affected businesses will also be banned from public procurement, face the closure of their bank accounts and suffer reputational damage once their names are published.
The acting CEO of the Business Registration Service, Lembey Mulike, explained that there is no legal limit on when a deregistered entity can apply for restoration of registration.
“This can happen at any time after an entity has been deregistered, provided the client has complied with all the terms of the reinstatement process,” Mulike said. Kaundu urged businesses to act quickly. “We encourage those who have not yet been deregistered to take immediate action before their names appear on the list.” – [email protected]