Most South African companies are deregistered for one reason: unfiled annual returns. The good news is that it is usually reversible.
How companies get deregistered
CIPC deregisters companies that fail to file annual returns over a sustained period. It can also happen on voluntary application by the company itself.
Notices are sent to the registered address on file, which is often an address the business left years ago. That is why most owners find out from their bank rather than from CIPC.
What deregistration does
- The company ceases to exist as a legal entity
- Banks can freeze or close the account
- Contracts in the company name become problematic
- Tender bids are invalid
- Assets in the company name become difficult to transfer
Reinstatement
Where a company was deregistered for non-compliance and was still carrying on business, or had assets, it can apply to CIPC for reinstatement.
You will generally need to show the company was operating or had assets at the time, bring all outstanding annual returns up to date, pay outstanding fees and penalties, and provide supporting documentation.
What it takes
| Step | Detail |
|---|---|
| Application | Submitted to CIPC with supporting documents |
| Outstanding returns | All missed years must be filed |
| Fees and penalties | Accumulated amounts become payable |
| Processing time | Weeks rather than days |
The cost of reinstatement is always higher than the cost of having filed on time. The penalties compound and the process consumes time you would rather spend trading.
Check your status
You can check your company status on CIPC. Do it now rather than discovering the problem when a bank or a bid committee does.
If your status shows anything other than in business, deal with it before it progresses further.
Need this filed without the admin?
Annual returns, beneficial ownership, director and address changes, registrations and reinstatements. Filed online, from R199.
General information, not legal or accounting advice. CIPC fees and requirements change. Confirm current details with CIPC before acting.