“Take re-registration seriously or face deregistration”: Companies warned

Judith Phiri,Zimpapers Business Hub

THE Department of Deeds, Companies and Intellectual Property has called on companies and entities to take re-registration seriously, as sanctions for non-compliance include deregistration and ceasing operations.

Once deregistered, a company or entity is struck from the companies’ register, while ceasing operation would require the owner to no longer carry out business as a legal person.

Speaking at a Business Compliance Workshop in Bulawayo on Tuesday, Chief Registar in the Department of Deeds, Companies and Intellectual Property, Mr Willie Mushayi said company re-registration was a process where existing companies update their registration details with the Registrar of Companies to comply with the new requirements of the COBE, (Section 303).

“A company or private business corporation must re-register under its existing name, without prejudice to its right after re-registration to change its name under Section 26. Re-incorporating the company, updating its information, and renewing its registration is very important,” he said.

“This process is required by legislation, under the Companies and Other Business Entities (COBE) Act (Chapter 24:31), and is a key step in ensuring companies remain legally compliant and their details are accurately recorded. Be aware that re-registration is not new registration according to Section 303 (11-13) of the COBE.”

He said re-registration does not create a new legal persona- (change company name, registered office, directorship, or share structure) and affect or prejudice the identity of the body corporate.

Mr Mushayi said it also does not affect the property, rights and obligations of the entity as well as affect legal or other proceedings by or against the entity.

He said as the purpose of re-registration was for legal compliance, ensuring entities comply with the latest legislative frameworks (COBE) and key to removing defunct entities.

Mr Mushayi added: “Re-registration helps establish new, updated register of companies and private business corporations, ensuring that all active businesses are accurately recorded, while its also important for the creation of the electronic companies registry.”