Deregistration

“What is company deregistration?”

Deregistration is the official process of closing your company through the CIPC.

Once a company is deregistered, it no longer exists as a legal entity, and that means you can’t trade, apply for tenders, open bank accounts, or sign contracts in its name anymore.

“When does a company get deregistered?”

There are two ways a company can be deregistered:

1 - Voluntary deregistration

You can apply to deregister your company if:

  • It has no outstanding assets or liabilities
  • You no longer need it for business

This is done by submitting a request to CIPC along with supporting documents.

Something important to know is that all of your company’s CIPC annual returns and SARS tax returns must be up to date before it can be deregistered.

2 - Automatic deregistration

CIPC can deregister your company automatically if you:

  • Don’t file your annual returns for two or more years
  • If you don't complete a beneficial ownership application every year
  • Fail to respond to CIPC notices
  • Become non-compliant for an extended period

This often catches business owners by surprise, especially if they didn’t realise annual returns are required every year.

“What happens after deregistration?”

Once your company is deregistered:

  • It loses its legal status
  • It can’t trade or enter into contracts
  • All bank accounts linked to it are usually frozen or closed
  • You’ll lose access to things like tenders and compliance documents

If the company had any assets or liabilities, these may be forfeited or become difficult to recover.

“Can a deregistered company be restored?”

Yes, but it can be a very long process.

If your company was deregistered by mistake or you need to get it back up and running, you’ll need to apply for a company restoration through the CIPC.

“How to avoid company deregistration?”

The easiest way is to stay compliant:

  • File your annual returns on time
  • Keep your company details updated
  • Submit your beneficial ownership register

Let Govchain manage your compliance so you never miss a deadline.


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