- Company Reregistration
Payments of Annual Returns to the Companies and Intelectual Property Commission are compulsory payments that a company is liable to pay annually to the CIPC. Failure to file annual returns may lead to the company being deregistered.
When a company is dereregistered, it ceases to exist. There are multiple reasons why the deregistration of a company should be avoided. These reasons include:
Any rights that the company had prior to its deregistration will be revived upon re-instatement.
RE-INSTATEMENT OF A DE-REGISTERED COMPANY
When the CIPC has commenced a deregistration process of a company, the annual returns together with the applicable penalty fees should be promptly paid. The deregistraton process can then be halted. Once a company has been finally deregistered it can only be restored if it is re-instated. In order to re-instate a company various steps have to be taken, for example advertisements in a local newspaper, and the obtaining of permission letters from the Department of Public Works and the National Treasury.
The CIPC will only re-instate a company or close corporation if:
If none of the above can be proven by the documentary evidence, the Companies and Intellectual Property Commission will not re-instate the company or close corporation and it may then be advisable to register a new company.
When a company is dereregistered, it ceases to exist. There are multiple reasons why the deregistration of a company should be avoided. These reasons include:
- a deregistered company lacks legal capacity to transact;
- there may be certain problems with accessing and managing your company’s bank account, as the bank account’s owner (the deregistered company) technically has ceased to exist;
- any assets, movable or immovable properties owned by the company (or Close Corporation) will be forfeited to the State and regarded as “bona vacantia assets”- it therefore vests in the State and not in the deregistered company.
Any rights that the company had prior to its deregistration will be revived upon re-instatement.
RE-INSTATEMENT OF A DE-REGISTERED COMPANY
When the CIPC has commenced a deregistration process of a company, the annual returns together with the applicable penalty fees should be promptly paid. The deregistraton process can then be halted. Once a company has been finally deregistered it can only be restored if it is re-instated. In order to re-instate a company various steps have to be taken, for example advertisements in a local newspaper, and the obtaining of permission letters from the Department of Public Works and the National Treasury.
The CIPC will only re-instate a company or close corporation if:
- the company or close corporation was in business at the time of deregistration (Sufficient documentary evidence in the form of bank statements for a period of six months before and six months after deregistration are required); or
- immovable property is registered in the name of the deregistered business; or
- it is in the best interest of a creditor.
If none of the above can be proven by the documentary evidence, the Companies and Intellectual Property Commission will not re-instate the company or close corporation and it may then be advisable to register a new company.