Closing a business or company in South Africa involves more than just halting operations; it also requires formal deregistration with both the Companies and Intellectual Property Commission (CIPC) and the South African Revenue Service (SARS). Deregistering means your business will no longer have a legal standing, nor will it be liable for taxes or compliance requirements. The process is straightforward but involves a few critical steps to ensure both CIPC and SARS recognise the business’s closure.
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Let’s walk through the steps to deregister your company with SARS:
Step 1: Deregister Your Company with CIPC
The first step is to initiate the deregistration process with CIPC. To do this, your company must confirm that it has no assets or liabilities. The CIPC will then process your deregistration request and, once completed, provide a deregistration confirmation letter. This letter is crucial as it will be needed when dealing with SARS. Learn more about CIPC’s deregistration process here.
Step 2: Book an Appointment with SARS
Once you have your confirmation letter from CIPC, you need to book an appointment with SARS. This can be done through the SARS eBooking system or by contacting them via their online channels. Make sure to select the option for business or company deregistration. More details about this process can be found on SARS’s guide here.
Step 3: Visit the SARS Branch or Submit Documents Online
When your appointment is confirmed, visit your nearest SARS branch (remember to bring the CIPC deregistration letter) or submit the necessary documents online if this is offered. SARS will need to deregister your company from all applicable tax types, such as VAT, PAYE, and income tax. During this process, SARS may verify that there are no outstanding tax liabilities or returns due.
Step 4: Follow Up with SARS
Once your documents are submitted, SARS will review them and deregister the business. If your company owes any taxes or has any pending tax returns, these must be resolved before the deregistration is finalised. You can track the progress through eFiling or the SARS Online Query System.
Step 5: Confirm Deregistration from All Taxes
After deregistration, make sure that SARS has confirmed the company is deregistered from all relevant tax obligations. This ensures that there are no future compliance issues.
If you need assistance or are unsure about any of the steps, don’t hesitate to contact an accountant, who can help navigate the deregistration process smoothly.
For more detailed guidance, check out Tax Consulting’s breakdown of SARS and CIPC deregistration or the SARS guide to closing a business.