Here’s how to prevent your CC from being deregistered
The Companies Act (71 of 2008) requires all Closed Corporations (CCs) to submit annual returns. If a CC fails to submit annual returns for at least 2 years without providing sufficient reasons, the CIPC will deregister the CC. What is the process after deregistration?
The CC will then have the opportunity to submit all outstanding annual returns before “final deregistration” takes place. The deregistration process will be stopped and the CC will continue to exist if all annual returns all submitted in time. It is not possible to merely submit outstanding annual returns once “final deregistration” has occurred. The CC will then have to apply for re-instatement. The CIPC will only reinstate a CC if it was in business at the time of deregistration and owns immovable property or if a court orders reinstatement. This can cause a major delay in the process as a property cannot be transferred to or from a CC that is either in the process of deregistration or final deregistration.
The application consists of:
- The prescribed form: CoR40.5 (the completed form must be emailed to email@example.com)
- Certified copy of the ID of the applicant
- Certified copy of the ID of the director/member
- A deed search that confirms if the CC owns immovable property
- If the CC does own immovable property, a letter from the Department of Public Works as well as the Treasury is required (this will indicate if they object to re-instatement)
- A payment of R200.00
- A copy of the notice that appeared in the local newspaper (this notice provides the opportunity to object to the re-instatement within 21 days)
Once the application has been approved, all outstanding annual returns must be submitted within 15 working days. The CIPC will publish the successful reinstatement on their website.
This article is reproduced here with the kind permission of MC van der Berg Inc