You have until just 30 April to submit your Memorandum of Incorporation or MOI and register your company with the Companies and Intellectual Property Commission (CIPC) free of charge. That gives you less than three weeks to do so. As a business owner, you're legally obliged to register your MOI under the Companies Act or you face hefty penalties. Here's the cheat's way to make sure you comply!
Have you already submitted your Memorandum of Incorporation to the Companies and Intellectual Property Commission?
If so, you're ahead of the pack.
And if you don't submit your MOI before the deadline of 30 April 2013, your existing articles and Memorandum will automatically become your new MOI.
This may seem like the easy option, but it's not a smart one.
Because your MOI is a legal document that states the rights, duties and responsibilities of shareholders, directors and others within a company, says FSP Business
These are effectively your core company rules as regulated by the King III code on corporate governance, says the Mail & Guardian Online
And ignorance of the laws is no excuse, even though businesses often only become aware of laws when they're threatened with a lawsuit or penalties as high as 10% of turnover for inadvertently contravening legislation, adds the Mail & Guardian Online
So best you comply and submit your Memorandum of Incorporation to the CIPC!
Your first step is to realise that while in the old days MOIs were very similar as they were standardised, you have roughly 50 choices with two or three options for each when drafting your MOI today, says The Business Day's BDLive
This means you have much more flexibility than before this version of the Companies Act.
For example, you can now choose to insure directors against liability if your company goes under, which was illegal before, adds The Business Day's BDLive
Not enough time personalise your MOI to your company? Submit it to the CIPC anyway!
But don't worry if you haven't made all these decisions yet though – you can always go back into the CIPC website to make changes later.
Just make sure you get a draft of the MOI in to the CIPC by deadline to avoid penalties.