As per our MC2agent last week a company or a CC can be deregistered in certain cases.
It is problematic for the seller and the agent as the property cannot be
transferred until the entity has been reinstated.
There are two stages in the deregistration process
If the entity was provisionally deregistered it can be reinstated by
merely submitting the outstanding annual returns and paying all outstanding
annual fees and penalties for late filing to the CIPC by the auditors,
whereafter the deregistration process will be stopped, and the entity will be
reinstated. This process takes approximately 2-4 weeks.
Once the company or CC has been finally deregistered the legal entity
can only be reinstated on application to the CIPC on the prescribed form
together with the required supporting documents and the payment of the
application fee of R 200. Notice of the application of reinstatement must
appear in a local newspaper (this notice provides the opportunity to object to
the re-instatement within 21 days). Normally the legal entity’s auditors attend
to the reinstatement.
Once the application has been approved, all outstanding annual returns
must be submitted and all annual fees and penalties for late filing must be
paid to the CIPC within 15 working days, whereafter the reinstatement will be
The CIPC will publish the successful reinstatement on their website.
This process can be tedious and can delay transfer by up to 12 weeks.
The prudent agent will establish the status of the legal entity on the
CIPC search when the property is listed.
Published: 20 November 2020