Inactive Company

“What is an inactive company?”

An inactive company is a registered business that is not currently trading, not earning income, and not incurring any business expenses.

Even if your business is registered and exists on paper, if it’s not actively operating, it’s considered inactive.

Does my company still need to comply if it’s inactive?

Yes,and this is where many business owners get caught out.

Even if your company is inactive, you still need to:

  • File annual returns with CIPC
  • Submit tax returns to SARS (usually with R0 declared)
  • Keep your company info up to date, like directors and beneficial ownership

Being inactive doesn’t mean you’re exempt from your legal obligations.

“What happens if I ignore compliance while my company is inactive?”

If you don’t stay compliant:

  • CIPC can deregister your company after 2 or more years of missed annual returns
  • SARS may still issue penalties or admin fees, even if no income was earned
  • You’ll face extra admin or costs if you ever want to restart the company later
  • It can damage your record when applying for tenders, funding, or contracts in the future

“Can you re-activate an inactive company?”

Yes, you can start trading again at any time, as long as your company is still active and compliant with CIPC and SARS.

If your company was deregistered because of inactivity, you may be able to restore it through a formal company restoration process.


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