Deregistration vs Liquidation


In the lifecycle of the CC or Company, it may cease to operate and wish to be deregistered or it may be “dissolved” as a result of liquidation. These situations are usually quite complicated and technical and specialist information should be sought. 

Liquidation and deregistration are not the same thing.




Liquidation implies that the business is not able to pay its debts. 

Liquidation further implies that the business will cease to operate (generally as a result of financial problems). 

The liquidation may come about:

  • as a result of a legal court process, or

  • by the creditors or

  • it may be voluntary liquidation i.e. applied for by Members or Directors of the CC or Company.

To apply for the liquidation of a CC or Company a form all the required form must be completed and lodged.




Deregistration implies that a business may choose to deregister (e.g. cease to be registered as a CC or Company) and is able to pay its debts. The business can continue in a different form e.g. as a sole proprietor after the deregistration. 

To apply for the CC to be deregistered: In order for the CIPC to process the deregistration request, the following information is required on an original letter head of either the company or close corporation, or any other person applying for deregistration:-

  • statement and sufficient documentary proof confirming that:

                      i.        the company or close corporation is not carrying on business or is dormant, and

                     ii.        has no assets or, because of the inadequacy of its assets, that there is no reasonable probability of the company being liquidated;

  • tax clearance certificate or any other written confirmation from the South African Revenue Services (SARS) that no tax liability is outstanding;

  • tax number (if available);

  • if the company or close corporation submits the request, the letter must be signed by each active director, member or the company or close corporation’s duly authorized representative or otherwise by the person who is requesting the deregistration; and

  • a certified ID copy of any of the persons’ signing the letter wherein deregistration is required.