If your company is no longer trading and you want to formally close it, you need to deregister it with the Companies and Intellectual Property Commission (CIPC). In this comprehensive guide, we explain how to deregister a company in South Africa, the requirements, costs, timeframes, and the step-by-step process — so you can close your business properly and avoid ongoing fees and penalties.
Don’t want to handle the paperwork yourself?
We handle the full CIPC & SARS deregistration process — R990, all-inclusive.
What Does It Mean to Deregister a Company?
Deregistering a company means formally removing it from the CIPC register so it ceases to exist as a legal entity. Once deregistered, the company can no longer trade, sign contracts, employ staff, or hold assets. The company’s registration number is cancelled and the name becomes available for others to use.
Company deregistration in South Africa is governed by Section 82 of the Companies Act 71 of 2008. There are two types of deregistration:
- Voluntary deregistration — when directors actively apply to close the company (form CoR40.1)
- Involuntary deregistration — when CIPC removes the company for non-compliance, usually for failing to file annual returns for 2+ years
This guide focuses on voluntary deregistration — the proper way to close a company you no longer need.
Why Should You Deregister a Company?
Many business owners leave dormant companies on the CIPC register, not realising the ongoing obligations and costs involved. Here’s why proper deregistration matters:
Stop Paying Annual Return Fees
CIPC charges annual return fees every year regardless of whether your company is trading. For a Pty Ltd company, this is currently R450 per year. Over time, these fees accumulate and can lead to penalties and eventual involuntary deregistration — which is messier than doing it voluntarily.
Avoid SARS Tax Penalties
An active company is required to file income tax returns with SARS annually. If you’re not trading but the company is still registered, SARS expects nil returns. Failure to file results in penalties starting at R250 per month that can quickly add up to thousands of rands.
Protect Your Director Record
If CIPC involuntarily deregisters your company due to non-compliance, this reflects negatively on you as a director. A clean voluntary deregistration ensures your compliance record is clear for any future business ventures.
Requirements to Deregister a Company with CIPC
Before CIPC will accept your deregistration application, the following conditions must be met:
- The company must not be trading — no active business, contracts, or revenue
- No outstanding debts — the company must owe nothing to creditors, SARS, or employees
- No remaining assets — all assets (bank accounts, property, equipment, intellectual property) must be distributed or disposed of
- Annual returns must be up to date — all CIPC annual returns must be filed and paid
- All directors must consent — a directors’ resolution authorising the deregistration must be passed
- No pending legal proceedings — the company must not be involved in any litigation
💡 Important: If your company has debts it cannot pay, you need liquidation — not deregistration. Liquidation is a court-driven process for insolvent companies. Deregistration is only for companies with no liabilities.
How to Deregister a Company in South Africa — Step by Step
Here is the complete process on how to deregister a company in south africa with CIPC:
Step 1: Settle All Debts and Distribute Assets
Before starting the deregistration process, ensure the company has no remaining debts or assets. Pay all outstanding creditors, close supplier accounts, and distribute any remaining funds to shareholders. Close the company bank account once all transactions are settled.
Step 2: File Outstanding CIPC Annual Returns
Check the CIPC website to verify whether your annual returns are up to date. If any are outstanding, they must be filed and paid before CIPC will accept the deregistration application. Each annual return costs between R100 and R450 depending on the company’s turnover.
Step 3: Pass a Directors’ Resolution
All directors must formally agree to deregister the company. This is documented in a directors’ resolution — a written document signed by all directors confirming the decision to voluntarily deregister. This resolution must accompany the CIPC application.
Step 4: Complete and Submit the CoR40.1 Form
The CoR40.1 is the official CIPC form for voluntary deregistration. It requires:
- Company registration number
- Company name
- Reason for deregistration
- Confirmation that the company has no assets, liabilities, or active business
- Directors’ resolution attached
The form is submitted to CIPC via their online portal or email. CIPC charges a filing fee for the deregistration application.
Step 5: Deregister with SARS
CIPC and SARS are separate entities. Deregistering with CIPC does not automatically cancel your SARS registrations. You must separately apply to deregister:
- Income Tax — via SARS eFiling or a SARS branch
- VAT — if the company is a VAT vendor, apply for VAT deregistration
- PAYE & UIF — if the company had employees registered for PAYE and UIF
- SDL (Skills Development Levy) — cancelled together with PAYE
All outstanding tax returns must be filed (even nil returns) before SARS will process the deregistration.
Step 6: Wait for CIPC Confirmation
After submission, CIPC reviews the application. If everything is in order, CIPC changes the company status to “Deregistration Process” and then finally to “Deregistered”. The full process typically takes 3 to 6 months.
Rather let us close your company properly?
We check your annual returns, submit the deregistration to CIPC and follow it through — R990. Want to keep the company instead? Ask us about reinstatement.
How Much Does It Cost to Deregister a Company?
The costs involved in company deregistration depend on your company’s compliance status:
Our R890 fee covers everything — CIPC deregistration, SARS deregistration, directors’ resolution, and all document preparation.
How to Deregister a Close Corporation (CC)
The process for deregistering a close corporation (CC) is similar but uses a different form — the CK7 instead of CoR40.1. Close corporations are governed by the Close Corporations Act 69 of 1984, and the same requirements apply: no debts, no assets, no active business, and all annual returns up to date.
Note that since 2011, CIPC no longer registers new close corporations. However, existing CCs can still be voluntarily deregistered using the CK7 process. Alternatively, you can convert your CC to a Pty Ltd before deregistering — though this is rarely necessary.
Deregistration vs Liquidation — Which Do You Need?
If your company simply isn’t trading anymore and has no debts, deregistration is the right choice. It’s faster, cheaper, and fully reversible if needed.
Can You Reinstate a Deregistered Company?
Yes. If circumstances change and you need the company back, CIPC allows reinstatement of deregistered companies. The process involves filing outstanding annual returns, submitting a reinstatement application, and paying applicable fees.
Our company reinstatement service costs R1,490 and handles the full reactivation process. Reinstatement typically takes 2–6 weeks.
What Happens to the Company Name After Deregistration?
Once a company is deregistered, the company name is released back to the CIPC register and becomes available for anyone to register. If you want to protect your company name, consider reserving it through CIPC’s name reservation process before deregistering.
Alternatively, if you plan to start a new business in the future, you can register a new company with the same or a similar name — subject to CIPC’s name availability rules.
Common Mistakes When Deregistering a Company
We regularly see business owners make these mistakes when trying to close their companies:
- Not filing with SARS — CIPC deregistration does not cancel your SARS registrations. You must separately deregister income tax, VAT, PAYE, and UIF
- Leaving the company dormant — hoping CIPC will eventually deregister it. This leads to accumulated fees and penalties
- Not closing bank accounts — company bank accounts should be closed before deregistration, as they cannot be accessed after
- Forgetting about employees — all employees must be properly retrenched (with UIF documentation) before deregistering
- Ignoring outstanding annual returns — CIPC won’t accept the CoR40.1 if annual returns are not up to date
Need help deregistering your company?
We handle the full CIPC & SARS deregistration — R890, all-inclusive. No stress, no paperwork.
Frequently Asked Questions
To deregister a company in south africa, submit a CoR40.1 form to CIPC with a directors’ resolution confirming the company has no debts, assets, or active business. All annual returns must be up to date.
The CIPC filing fee is R50–R175. Outstanding annual returns cost R100–R450 each. Our all-inclusive deregistration service costs R890, covering CIPC deregistration, SARS deregistration, and all document preparation.
CIPC typically processes voluntary deregistration applications within 3 to 6 months from submission, provided all compliance requirements are met.
No. A company with outstanding debts cannot be voluntarily deregistered. All liabilities must be settled first. If the company cannot pay its debts, liquidation — not deregistration — is the appropriate legal process.
You need the CoR40.1 form for a Pty Ltd company. For a close corporation (CC), you need the CK7 form. Both are submitted to CIPC.
Yes. CIPC deregistration does not automatically cancel your SARS tax registrations. You must separately apply to deregister income tax, VAT, PAYE, and UIF with SARS.
Yes. CIPC allows reinstatement of deregistered companies. You need to file outstanding annual returns and submit a reinstatement application. Our reinstatement service costs R1,490.
Deregistration is for solvent companies with no debts that simply want to close. Liquidation is a court process for insolvent companies that cannot pay their debts. Deregistration costs around R890; liquidation can cost R20,000–R100,000+.
