Starting a new business is not easy, especially paperwork such as "requesting a company affidavit" (the DBD company certificate)

To prevent these problems, this article walks you through 5 common mistakes made when requesting a company affidavit and recommends the correct approach for every business owner.

1. Affidavit Details Do Not Match the Company's Registration

Many business owners fill in details such as the company name, directors' addresses or the company's objectives differently from what was registered, even through small slips such as a missing letter in the company name or wording that differs from the original.

Consequences

  • The documents are rejected by the Department of Business Development (DBD)

  • Time is lost correcting and resubmitting

  • The company's credibility suffers

  • Business transactions that urgently need the affidavit are affected

How to Prevent It

Check the details in the existing affidavit, or request a copy from the DBD e-Registration system, before filling in a new form every time. If any details have changed, register the amendment before requesting the affidavit

2. Missing or Incorrect Signatures on the Affidavit Request

Some company owners delegate the task to someone else but forget to have the authorised person sign or to attach a proper power of attorney. In some cases the signatory's signature does not match the one previously filed with the DBD

The key is to make sure that the person authorised to sign under the company affidavit is the one who signs, and if authority is delegated, the details must be complete, such as name, address and scope of authority

Consequences

  • Incomplete documents

  • The whole process must be repeated

  • Business opportunities that urgently need this document may be lost

How to Prevent It

Learn which cases require a signature or a power of attorney, and always attach a copy of the grantor's ID card

3. Not Paying the Fees in Full

Paying fees incompletely, such as the affidavit fee or the delivery charge, brings the issuing process to a halt. In some cases business owners wrongly believe that paying part of the fee is enough

What Is Often Overlooked

  • Transferring money to the wrong account

  • Not attaching proof of payment

  • Paying after the specified deadline

  • Forgetting to enter the payment reference number in the system

How to Prevent It

Check the fees clearly with your accounting firm or on the DBD website before paying every time, attach correct proof of payment, and keep the receipt until you receive the official affidavit

Paying fees incompletely, such as the affidavit fee or the delivery charge, brings the issuing process to a halt

4. Using an Outdated Form or the Wrong Type of Form

Using the wrong type of form, such as a limited company form to request the affidavit of a public company, or an old form that the DBD has since revised, is a common mistake

Results

  • The documents fail review

  • The process must be repeated, wasting time

  • Additional fees may have to be paid again

Downloading forms from websites other than the official source can lead to using an old version that is no longer in force. There is also the use of a form that does not match the type of juristic person, such as a limited partnership using a company form

5. Not Planning the Affidavit in Advance When the Document Is Needed Urgently

In some cases business owners urgently need the document to sign a contract, take out a loan or open a bank account, leaving no time to prepare the paperwork carefully

Problems That Follow

  • Negotiations or transactions have to be postponed

  • Loss of credibility with trading partners

How to Handle It

Plan at least 3-5 working days ahead, and use an experienced accounting firm to help prepare the documents quickly

Requesting a company affidavit may seem a small step, but it has a major effect on the business. Avoiding these 5 mistakes will let business owners run their business with confidence and without interruption