How to Deregister a Company on CIPC in South Africa

Many businesses in South Africa stop trading but remain registered with the Companies and Intellectual Property Commission (CIPC). This can lead to ongoing annual return fees, tax penalties from the South African Revenue Service (SARS), and unnecessary compliance obligations that pile up year after year.

Deregistering a company is the formal process of closing it down so it no longer exists as a legal entity. If your business is no longer operating, deregistering protects you from accumulating debt and legal issues. You will also need to deregister your tax obligations with SARS separately.

This guide covers everything you need to know, including how to deregister a company on CIPC step by step, how to deregister a company online, how to deregister from SARS and SARS eFiling, how to cancel your VAT registration, how much it costs, and how long the process takes.

If you are still in the process of deciding whether to close or keep your company, you may first want to understand what a Pty Ltd company is and what obligations come with it.

How to Deregister a Company on CIPC (Step-by-Step)

There are two ways to deregister a company with CIPC: voluntary deregistration (where you apply) and automatic deregistration (where CIPC initiates the process due to non-compliance). The voluntary route is the recommended and fastest option.

Here is the step-by-step voluntary deregistration process:

Step 1: Ensure the Company Is Not Trading

Before you begin, your company must meet the following requirements:

• The company is dormant and not carrying on any business.
• It has no assets remaining.
• It has no outstanding liabilities or debts.
• It has no employees on record.

The company must genuinely have ceased all operations. If the company has assets that cannot be distributed, it may need to be liquidated instead, which is a different legal process.

Step 2: Ensure CIPC and SARS Compliance

Before CIPC will accept a deregistration application, your company must be compliant. This means your CIPC annual returns must be up to date, and your SARS tax returns must be filed, even if the company has been dormant. SARS imposes strict penalties for non-submission of tax returns, even for companies that are not trading. You also need a Tax Clearance Certificate or written confirmation from SARS confirming that no tax liability is outstanding.

Step 3: Prepare Supporting Documents

You will need the following documents:

• A deregistration request letter on your company letterhead, stating the company is dormant, has no assets, and has no liabilities. Include the company name, registration number, and income tax number.
• A Tax Clearance Certificate (TCC) from SARS or written confirmation of no outstanding tax liability.
• A certified ID copy of the person signing the request.
• The letter must be signed by at least 50% of the active directors.

Step 4: Submit the Deregistration Request

As of 8 December 2025, CIPC has automated the voluntary deregistration process. Applications must now be submitted online through CIPC eServices, BizPortal, or the CIPC Self-Service Terminals. The dedicated email address (deregistrations@cipc.co.za) is no longer in use for new applications.

At least 50% of active directors or members must confirm the deregistration via OTP (One-Time Pin) during the online submission.

Step 5: Wait for Processing and Final Deregistration

After submission, CIPC will change the company status to “In Deregistration.” There is a four-month objection period between this status and “Final Deregistered” to allow directors, members, or other stakeholders to raise objections. If no valid objection is received, the company will be moved to “Final Deregistered” status, meaning the process is complete.

How to Deregister a Company Online in South Africa

Since December 2025, CIPC has moved voluntary deregistration to its online platforms. You can no longer submit applications by email. Here are your options:

Option 1: CIPC eServices

1. Log in at eservices.cipc.co.za using your customer code and password.
2. From the service dashboard, select “More Services,” then “Company/CC Voluntary Deregistration.”
3. Click “New Voluntary Deregistration” and then “New Application.”
4. Enter your company registration number in the correct format (e.g., 2025/000123/07).
5. Confirm the active directors or members and verify that contact details are up to date.
6. Select the directors who have consented to the deregistration.
7. Complete the OTP verification process. Once verified, click Submit.
8. A confirmation message will appear once the application is successfully submitted.

Option 2: BizPortal

1. Log in at bizportal.gov.za using your ID number.
2. Navigate to company services.
3. Select voluntary deregistration.
4. Follow the on-screen prompts, confirm director consent via OTP, and submit.

You can check your application status anytime on BizPortal. “In Deregistration” means the process has started. “Final Deregistration” means it is complete.

Before starting the process, it is worth confirming your company’s current status. You can learn how to check if a company is registered to verify its standing on CIPC records.

How to Deregister a Company from SARS

Deregistering your company with CIPC does not automatically close your SARS accounts. SARS deregistration is a separate process that must be completed after CIPC confirms your company has been deregistered. If you leave your SARS accounts open, you will continue to receive penalties for non-submission of tax returns.

Here is how to deregister a company from SARS:

1. Submit all outstanding tax returns for the company, including income tax, even if the company was dormant during the tax year.
2. Close your PAYE (employees’ tax) account if the company had employees. Submit the final EMP501 reconciliation and EMP123 form within 14 business days after ceasing business.
3. Cancel your VAT registration if the company was registered for VAT (covered in detail below).
4. Once CIPC deregistration is confirmed, take your CIPC deregistration notice to SARS and request deregistration for all active tax types.

You can visit your nearest SARS branch (book an appointment first using SARS eBooking) or submit a written request for deregistration.

Once all tax types are deregistered, SARS will release you from any further obligations linked to that company. When PAYE is cancelled, UIF is automatically cancelled on the SARS record as well.

How to Deregister a Company on SARS eFiling

SARS has simplified parts of the deregistration process through its eFiling platform. Here is how to use it:

1. Log in to the SARS eFiling platform at www.sarsefiling.co.za.
2. Navigate to the “Registration Maintenance” section.
3. Select the tax type you want to deregister (e.g., Income Tax, PAYE).
4. Request deregistration and complete the required information.
5. Upload or submit any supporting documents as requested.
6. Confirm and submit.

Note that VAT cancellation requires a separate form (VAT123e), which can be submitted via eFiling, email, or at a SARS branch. Not all tax types can be deregistered through eFiling alone, so you may still need to visit a SARS branch or submit documentation by email for certain types.

How to Deregister a Company for VAT

If your company was registered for VAT, you must cancel that registration as part of the deregistration process. SARS will not finalise the VAT cancellation until all outstanding VAT liabilities and obligations are resolved.

Here is the process:

1. Submit all outstanding VAT returns up to and including the final tax period.
2. Declare output tax on any assets still on hand at the date the business stopped trading on your final VAT return.
3. Complete the VAT123e form (Application for Cancellation of Registration).
4. Submit the form to SARS via eFiling, email, or at your nearest SARS branch.
5. SARS will issue a notice of cancellation confirming the date it takes effect.

You must continue to charge and account for VAT until the final tax period confirmed by SARS. Late payment of VAT will attract penalty and interest.

A vendor may apply for cancellation when the value of taxable supplies will fall below the R1 million compulsory registration threshold, or when the business has ceased trading entirely.

How Long Does CIPC Take to Deregister a Company?

The time it takes to deregister a company depends on the method you choose and whether your documents are in order.

Voluntary deregistration (online application): Approximately 2 months for simple, straightforward cases submitted through the new automated system. However, the full process includes a four-month objection period between “In Deregistration” and “Final Deregistered” status, so the total timeline can be around 4 to 6 months from application to final deregistration.

Voluntary deregistration (legacy system): Applications submitted before December 2025 through the old email system could take 3 to 12 months, depending on backlogs.

Automatic deregistration: If a company simply stops filing annual returns, CIPC will begin the deregistration process after two consecutive missed returns. However, this can take several years, and SARS may charge penalties throughout, making it a risky option.

SARS deregistration: The turnaround time to finalise deregistration with SARS is typically 12 to 18 months, largely due to common shortcomings like not having an active tax representative registered.

How Much Does It Cost to Deregister a Company?

Method	Cost
CIPC voluntary deregistration (self-service)	Free (no CIPC fee for the application itself)
Professional service provider	R500 to R2,500 depending on the provider

The main costs are indirect. If your annual returns or tax returns are not up to date, you will need to pay outstanding CIPC annual return fees and settle any SARS penalties before the deregistration can proceed. If you are weighing up costs, our guide on how much it costs to register a company gives you a clear picture of both registration and ongoing compliance costs.

How to Deregister a Company on BizPortal

BizPortal is one of the simplest ways to deregister a company online. Here are the steps:

1. Go to bizportal.gov.za and log in using your ID number.
2. Navigate to company services on your dashboard.
3. Confirm that your company status shows “In Business.” The application will be blocked if the company is already in deregistration or finally deregistered.
4. Select “Voluntary Deregistration” and start a new application.
5. Enter the company registration number and confirm director or member details.
6. Ensure at least 50% of active directors or members consent to the deregistration via OTP.
7. Upload any required information including a letter with asset and liability details.
8. Submit the application.
9. Monitor the status on BizPortal. “In Deregistration” means processing has started. “Final Deregistration” means the company is closed.

Reasons to Deregister a Company

There are several valid reasons to deregister a company in South Africa:

• The business is no longer operating and has permanently stopped trading.
• The company was registered but never actually traded.
• You want to avoid accumulating annual return fees and SARS penalties.
• You are switching to a new business structure, such as starting a fresh Pty Ltd company.
• The company has fulfilled its purpose and is no longer needed.
• You want to free yourself from ongoing compliance obligations.

Whatever the reason, it is always better to formally deregister than to simply abandon a company. An abandoned company continues to generate fees and penalties that can follow directors for years.

Common Mistakes When Deregistering a Company

Many business owners make avoidable errors during the deregistration process. Here are the most common ones:

• Not closing SARS accounts. CIPC deregistration does not automatically deregister your company with SARS. You must do both separately.
• Outstanding annual returns. CIPC requires annual returns to be up to date for voluntary deregistration. If they are not filed, your application will not be accepted.
• Unpaid taxes or penalties. SARS must confirm that there is no outstanding tax liability before CIPC will process the deregistration.
• Company still holding assets. The company must have disposed of all assets before deregistration. Any assets remaining after deregistration pass to the State.
• Outdated contact details on CIPC. If your email or phone number on file with CIPC is incorrect, you will not receive the OTP required for the online application, and you will miss important deregistration notifications.
• Not having an active SARS tax representative. Since May 2021, SARS has required each company to have an active tax representative. Without one, the SARS deregistration process is significantly delayed.

What Happens After a Company Is Deregistered?

Once a company reaches “Final Deregistered” status on CIPC records, the following happens:

• The company ceases to exist as a legal entity. It is dissolved as of the date its name is removed from the companies register.
• It can no longer trade, enter into contracts, or conduct any form of business.
• All active contracts are terminated.
• Company bank accounts will be closed or frozen by the bank.
• Any assets that were still in the company name at the time of deregistration pass to the State as bona vacantia (property without an owner).
• The deregistration does not remove the liability of former directors or shareholders for any actions or omissions that occurred before deregistration.

If a company was deregistered by mistake or while it was still trading, it is possible to apply for reinstatement through CIPC, but this is a separate, more complex process that requires evidence the company had economic value at the time of deregistration.

It is also important to remember that if you ever want to start a new business, you can register a new company even while the old one is still being deregistered. Learn how much it costs to register a company to plan ahead.

Frequently Asked Questions

1. How do I deregister a company on CIPC? 

You deregister a company on CIPC by submitting a voluntary deregistration application through the online platforms (CIPC eServices, BizPortal, or Self-Service Terminals). You must ensure the company is not trading, has no assets or liabilities, and that your annual returns and SARS tax returns are up to date. At least 50% of active directors must confirm the application via OTP.

2. How do I deregister a company in South Africa?

 To deregister a company in South Africa, you need to complete two separate processes. First, apply for voluntary deregistration with CIPC through their online platforms. Second, once CIPC confirms the deregistration, visit SARS (by appointment) or use eFiling to deregister all active tax types including income tax, PAYE, and VAT.

3. How do you deregister a company?

 You deregister a company by ensuring it has stopped trading, settling all debts, filing all outstanding annual returns and tax returns, obtaining a Tax Clearance Certificate from SARS, and submitting a voluntary deregistration application to CIPC online. After CIPC confirms deregistration, you complete the SARS deregistration separately.

4. Can you deregister a company online?

 Yes. Since 8 December 2025, CIPC requires all new voluntary deregistration applications to be submitted online through CIPC eServices, BizPortal, or the CIPC Self-Service Terminals. The old email submission method is no longer available for new applications.

5. Do I need to deregister from SARS as well?

 Yes. CIPC deregistration and SARS deregistration are two separate processes. After your company is deregistered with CIPC, you must visit a SARS branch (by appointment) or submit a request through eFiling to deregister all tax types. Failing to do so will result in continued penalties for non-submission of returns.

6. How long does it take to deregister a company?

 The voluntary CIPC deregistration process takes approximately 2 to 6 months, including the four-month objection period. The SARS deregistration process can take an additional 12 to 18 months. If documents are incomplete or compliance is not up to date, the entire process can take significantly longer.

7. How much does it cost to deregister a company?

 There is no CIPC fee for voluntary deregistration when you do it yourself through the online platforms. If you use a professional service provider, costs typically range from R500 to R2,500. Additional costs may apply if you need to settle outstanding annual returns or SARS penalties first.

8. What is the difference between deregistration and liquidation?

 Deregistration is for companies that have stopped trading and have no assets or liabilities. Liquidation is a legal process for companies that cannot pay their debts. A company that still has significant assets and debts cannot simply be deregistered; it must go through liquidation.

Key Takeaways

Deregistering a company on CIPC in South Africa is not difficult, but it does require careful attention to compliance. The most important thing is to ensure that both your CIPC annual returns and SARS tax returns are up to date before you apply. Using the new online submission process through CIPC eServices or BizPortal makes the application faster and more efficient than the old email method.

Do not make the mistake of abandoning a company without formally deregistering it. The penalties and legal consequences can follow you for years. Take the time to close it properly with both CIPC and SARS, and you can move forward with a clean slate.

If you are thinking about starting a new venture after closing your current company, check out our guide on how much it costs to register a company to get started the right way. And if you want to understand ownership structures before launching, our guide on how to buy shares in a company explains the basics of shareholding in South Africa.