When the time has come to close shop, a company or close corporation may be deregistered upon request from the company or close corporation or any other third party, but only provided that the company or close corporation:
- has ceased to carry on business; and
- has no assets or, because of the inadequacy of its assets, there is no reasonable probability of the company being liquidated.
What is needed from the company?
In order for the Companies and Intellectual Property Commission (CIPC) to process the deregistration request, the following information is required on an original letter head of either the company, close corporation or any other third person applying for deregistration:
- A statement confirming that
a) the company or close corporation is not carrying on business or is dormant; and
b) has no assets, or because of the inadequacy of its assets, that there is no reasonable probability of the company being liquidated (if third party, the statement must be supplemented with sufficient documentary proof confirming the statement).
- A tax clearance certificate or any other written confirmation from SARS that no tax liability is outstanding (an affidavit if not registered for tax).
- If the company or close corporation submits the request, the letter must be signed by each active director, or otherwise by the person who is requesting the deregistration.
- The tax number (if available).
- A certified ID copy of any of the persons signing the letter wherein deregistration is required.
When a business/company has been deregistered with the CIPC, it implies the business/company is no longer registered and has no legal standing since it’s not doing any business nor has any assets or liabilities.
References:
- Companies and Intellectual Property Commission | CIPC
- The South African Revenue Service | SARS
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)