Articles on: CIPC

How to deregister a dormant company

Estimated reading time: 40 seconds

Dormant companies are companies that are not actively making a profit (aka not trading) , these companies also have no assets or liabilities. However just because the company is not trading does not mean the company does not exists, they still need to pay their annual returns.

Deregistration will begin automatically when a company fails to file two or more annual returns. The CIPC will then notify the company to inform them of their deregistration status (using the contact details provided to them). And the company will be deregistered altogether when a maximum of five annual returns are outstanding.

A company can also be manually referred for deregistration by any person, company, or close corporation (incl. the company itself), provided the company has ceased to carry on business and has no assets or inadequate assets for the purpose of liquidation.

To Deregister your company, follow the instructions below:

Step 1: Compile a letter stating that:

the company has ceased all trading or is dormant
the company owns no assets and cannot be liquidated
include the company tax number
the letter must be signed by at least 50% of the board

Step2: Retrieve the following additional supporting documentation:

tax clearance or other SARS-certified document indicating no tax liability exists
If a third party is applying for the deregistration proof must be submitted that the company is dormant or has ceased trading and has no assets and therefore cannot liquidate

Step 3: Send the letter and other supporting documents to deregistrations@cipc.co.za.

Your deregistration finalisation will be processed within 3 months, you will then receive a final deregistration letter from CIPC to confirm the deregistration.

Updated on: 26/04/2023

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