If a company is not active, members can unregister the company. To de-register, members must write a letter to CIPC (on company letterhead) stating that the company is dormant and has no assets or liabilities and that all members intend to de-register the company. All parties must agree to and sign this letter.
CIPC will then inform the relevant government departments, e.g. SARS, WCA, FIU, etc., as well as place an announcement in the Official Gazette. There are no costs involved.
How to Deregister a Company in South Africa
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How Do I Deregister a Company?
To de-register the members must write a letter to CIPC (On the company letterhead) stating that the company is dormant, and has no assets, no liabilities and that all the members intend to de-register the company. All parties must be in agreement and sign this letter.
How much does it cost to deregister a company in South Africa?
Another option is that the client does not pay the annual declaration and then CIPC will automatically cancel the company. The assets of the company then belong to the state and the liabilities remain with the now non-existent company, effectively relieving the director of his/her responsibilities.
This puts banks in a very uncomfortable situation if there are loans involved until the companies are re-established and the annual returns are paid. Clients often opt for new business registration rather than restoration.