How to become a business rescue practitioner in South Africa

Embarking on the journey to become a Business Rescue Practitioner (BRP) in South Africa is a pathway filled with challenges, but also immense opportunities to make a significant impact in the corporate landscape. As the country navigates through economic fluctuations and business uncertainties, the role of a BRP has become increasingly vital. This article serves as a guide for aspiring professionals eager to step into this pivotal role.

Educational Qualifications:

The first step toward becoming a Business Rescue Practitioner is acquiring the necessary educational qualifications. A minimum requirement is often a relevant bachelor’s degree in accounting, law, business management or a related field.

Many practitioners further enhance their credentials by pursuing postgraduate studies in business rescue or insolvency.

Registration and Licensing:

In South Africa, the Companies Act of 2008 regulates business rescue practices. Prospective practitioners must register with a professional body recognized by the Companies and Intellectual Property Commission (CIPC). This includes adherence to the regulatory framework and obtaining the required licenses to operate as a Business Rescue Practitioner.

Application for a Business Rescue License

You can apply for a license online via the CIPC website.

For your ease of reference, follow this link for a step-by-step guide on how to register online:

https://www.cipc.co.za/wp-content/uploads/2022/02/Business_rescue_steps_by_step.pdf

Documents Required for Registration:

The following supporting documents must accompany the COR126.1 application form:

  • A comprehensive CV containing full and detailed particulars of your relevant practical experience in business turn around practice
  • Certified copies of your qualifications
  • Motivation to substantiate the specific group or category that you wish to be licensed for, clearly demonstrating your relevant experience for a senior practitioner (combined period of at least 10 years), experienced practitioner (combined period of at least 5 years) or a junior practitioner (combined period of less than 5 years).
  • Evidence to substantiate the factual information in respect of history and relevant practical experience
  • References that relate to the years of experience required for the specific category
  • Proof of Membership to professional body or bodies including membership numbers
  • Certified copy of your Identity Document or Passport
  • Copy of valid tax clearance certificate (individual)
  • A letter from the business that is applying for business rescue proceedings nominating you as the business rescue practitioner
  • A statement that you are not disqualified from being appointed as a practitioner in terms of section 138(1) (c), (d), (e) and (f) of the Companies Act 2008
  • Copy of valid tax clearance certificate (individual)

A copy of the COR126.1 form can be found at the following link:https://www.cipc.co.za/wp-content/uploads/Forms/Companies/CoR126_1.pdf

Shackleton Risk offers Professional Indemnity Insurance for Business Rescue Practitioners. We are here to ensure that BRPs are covered for the risks they are exposed to in the course of their business.

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