As a business owner, you might find yourself in a position where you need to deregister your company with the CIPC (Companies and Intellectual Property Commission). There are various reasons for this, including a change in business strategy, financial difficulties, or perhaps the company has reached the end of its lifespan. Whatever the rationale, it's best to know how to deregister a company with the CIPC beforehand to make the process smooth and relatively hassle-free.
Step 1: Disposal Of Assets And Liabilities
Before proceeding with the deregistration process, you must ensure that your company has no assets or liabilities. In the event that you have outstanding debts, pay them off as soon as possible. If you have any assets, liquidate them and ensure you distribute the proceeds to shareholders, employees and other stakeholders, as required.
Step 2: Prepare All Required Documents
The next step is to ensure that you have all the necessary documents needed to successfully deregister your company. These documents include:
- Form CoR40.1 – This is the application form used for closing a business. You can access it on the CIPC's Website or physically collect a copy.
- Final Financial Statements – You must make sure that you have your final financial statements prepared before applying for deregistration. These statements must be audited and signed off by a registered accountant.
- Tax Clearance Certificate – You must obtain a tax clearance certificate from the South African Revenue Service (SARS).
Step 3: Submit The Application Form
Once you have gathered all the necessary documents, you may submit the Form CoR40.1 to the CIPC. The application process can be done electronically on the CIPC website or physically by submitting the form at their offices. While applying for deregistration, you must make sure that all your details are accurate and up-to-date.
In some cases, shareholders and employees might need to provide written consent for the company to be deregistered. You must obtain written consent and submit it alongside the Form CoR40.1.
Step 5: Wait For Confirmation From CIPC
Once the application has been submitted, you must wait for confirmation from the CIPC. This confirmation can take up to 20 days. If your application is successful, the CIPC will issue a notice of deregistration and your company will no longer exist.
- Deregistering a company with the CIPC is a straightforward process that involves disposing of assets and liabilities, preparing necessary documents such as audited financial statements and a tax clearance certificate, submitting the application form, obtaining consent from shareholders and employees, and waiting for confirmation from the CIPC.
- Ensure that you follow all the steps to the letter to avoid any delays in the deregistration process.
- Remember that deregistration is irreversible, so make sure that this is the right decision for you and your company.