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Restorations of companies that have been deregistered for any reason.

25 Apr

article1v2blogWe have come across many clients who’s companies or closed corporations (“CC”) have been deregistered with them being blissfully unaware of this fact. Only once the company or CC has to again transact, this fact comes to light.

As a company/CC has to be active, or “in business” as the CIPC (Companies and Intellectual Properties Commission) terms it, the company/CC in question will first have to be re-instated or restored before it can again transact lawfully. This procedure can take anything from 2 (two) months to much longer, given the recent onerous requirements laid down for restorations of companies and CC’s. Due to this unforeseen delay, the Company/CC then also runs the risk of losing the deal or transaction they had.

One of the most common reasons for the deregistration of companies, and one which most directors/shareholders are not even aware of, is annual return non-compliance. There are, however, other reasons too.

In order to change the company’s/CC’s status to “in business” again, the company/CC must follow the restoration procedure. This procedure includes obtaining consent from National Treasury and Public Works as well as advertising the proposed restoration in the local newspaper. Various affidavits also have to be lodged by the directors or members of the company/CC. Should your company/CC have been deregistered due to annual return non-compliance, all outstanding annual returns plus a penalty fee, based on the company’s/CC’s annual turnover for the specific years in question, will have to be paid to the CIPC. Once the restoration procedure has been completed successfully, the company’s/CC’s status will again display as “in business” and it will again be able to transact as before being deregistered.

Should you have any doubts as to whether your company/CC is still an active entity according to the CIPC’s data basis, or should you wish to restore your deregistered company/CC you are welcome to contact us for further details in this respect.
Meyer de Waal (meyer@oostco.co.za) or Samantha Thornhill (samantha@oostco.co.za) Tel: 021 461 0065.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice.

 

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