Each year more than 50 000 companies are deregistered by the Registrar of companies, usually due to noncompliance with annual returns submission laws. The process of restoring a company from the status of “Final Deregistration” to “In Business” can be lengthy. This is further complicated by the fact that the CIPC (Companies and Intellectual Property Commission) has discontinued the online restoration application and instead reverted back to the old process. This means that Company Restoration can take between 3-4 months before your company is legally back in business.
In order to restore a company, the CIPC require the following documentation to initiate the restoration process:
- Certified ID copies of all the members of the company.
- A copy of the notice placed in the local newspaper that gives 21 days notice of the intention to restore the company.
- An original letter from the deeds office reflecting immovable property, either in the name of the business or not.
- If there is immovable property, the CIPC will require an original letter from the Public Works Office to indicate that they have no objection to the restoration.
- If the company has been deregistered due to noncompliance with annual returns: An original affidavit indicating the reason for not filing the annual returns of the company.
- If the company applied for deregistration: An original affidavit indicating the reason for the initial application for deregistration.
- Original documentary proof that the company was in business at the time of deregistration. This can include:
- Lease agreements,
- Bank Statements showing activity during the deregistered period,
- a valid invoice issued by a supplier to the entity during the deregistered period etc.
These documents should be filed along with a CoR40.5 form and can be completed either by the company or an authorised representative appointed by the company. Once the form and supporting documents are filed and processed the company status will change from ‘Final Deregistration’ to ‘Reinstatement Process’. Thereafter if all the compliance's are met, the company should be officially registered as a business within 3-4 months.Contact PTYNow if you are interested in Restoring your company.