Business, CIPC & SARS
How to Deregister a Dormant Company with CIPC
If a company is dormant and you no longer need it, voluntary deregistration formally removes it from the CIPC register so the annual-return and tax obligations stop. Here is how the process works and what to sort out first.
Quick answer
To voluntarily deregister a dormant company, submit a written request to CIPC (the CoR40.1 process) confirming the company is not trading and has no assets, signed by at least 50% of active directors. First bring CIPC annual returns and SARS returns up to date. The process can take months, and the company is only legally gone once it shows "Final Deregistered". Confirm the process on cipc.co.za.
Key points
- Voluntary deregistration removes a dormant company from the CIPC register so its ongoing obligations end.
- You apply using the CoR40.1 process with a letter confirming the company is not trading and has no assets.
- The letter must be signed by at least 50% of active directors (or members), and include the tax number if available.
- First file all outstanding CIPC annual returns and SARS returns, and settle your tax position, to deregister cleanly.
- The company stays liable for annual returns and tax until it is formally deregistered.
- It is only legally deregistered once the CIPC status shows "Final Deregistered"; confirm the process on cipc.co.za.
Step by step
When deregistration is the right move
Voluntary deregistration formally removes a company from the CIPC register. Once it is done, the company ceases to exist and the ongoing duties, annual returns to CIPC and tax returns to SARS, fall away. It suits a dormant company you no longer need and that has no assets, or assets too small to make liquidation worthwhile. If the company still trades, employs people, or has creditors and assets to wind down, deregistration is not the correct route and a proper winding-up may be needed. This is an independent explainer, not CIPC or SARS, and it is not legal, tax or accounting advice, confirm the current process on cipc.co.za.
Clean up before you apply
The most common mistake is treating deregistration as a way to escape a backlog. In fact, a dormant company stays liable for its CIPC annual returns (including the beneficial ownership declaration, as of 2026) and its SARS returns until it is formally deregistered. To deregister cleanly, bring the annual returns up to date, file any outstanding SARS returns including zero-income ones, and get the company’s tax affairs in order. Tidying this up first avoids the application stalling and prevents loose ends that can follow the directors afterwards.
The letter and the CoR40.1 request
Voluntary deregistration is requested through the CoR40.1 process, supported by a letter. The letter must confirm that the company is not carrying on business or is dormant and has no assets (or that its assets are too inadequate for liquidation to be reasonably likely). Include the company’s tax number if you have one. Crucially, the letter must be signed by at least 50% of the active directors (or members, for a close corporation), or by the third party who is requesting the deregistration.
| Element | What it needs |
|---|---|
| Form | CoR40.1 voluntary deregistration request |
| Letter | Confirms dormant / no assets; tax number if available |
| Signatures | At least 50% of active directors or members |
What happens after you lodge it
CIPC publishes a notice so that creditors and other interested parties have a window to object. If there are no objections, the deregistration proceeds. As of 2026, CIPC sends these notices by email to the contact details on the company’s record rather than by post, so make sure the company’s registered email is current, otherwise you may miss something important. The applicant generally does not receive email status updates, so you should track progress on the company’s CIPC profile (BizProfile) rather than waiting to be told.
Already in annual-return deregistration?
If the company has already slipped into the annual-return deregistration process because of unfiled returns, you can still apply voluntarily, but your letter must also explain why the returns were not filed on time and request that the status be changed to voluntary deregistration. This adds a processing step and can lengthen the timeline.
Knowing when it is final
Timeframes vary and are best treated as estimates, often running to several months because of the objection period. The key point is that the company is only legally deregistered once its CIPC status shows “Final Deregistered”. Until then it still exists and its obligations continue. Check the status yourself before assuming the company is gone, and confirm the current process and any fees on cipc.co.za.
⚠ Stay safe
Be cautious of "company closure" services that charge heavily to do what is a low-cost CIPC request, and of anyone who claims they can make tax debts disappear by deregistering. Deregistering at CIPC does not wipe out money owed to SARS, and directors can remain exposed if obligations are left unresolved. Lodge the request through official CIPC channels, keep your company's contact email current so you receive the notices, and never share your CIPC or eFiling login or OTP with an agent.
Frequently asked questions
Which companies can be voluntarily deregistered?
What must the letter say and who signs it?
Do I still have to file returns while deregistering?
How long does it take?
How will I know it is done?
What if the company is already in annual-return deregistration?
CluedUp is an independent guide and is not affiliated with any government agency. Fees, links and steps can change — always confirm on the official portal before you act. This is general information, not legal or financial advice.