So, you registered a company. The plans were big, but what about the energy? Immaculate. The universe sometimes has different plans, so despite all the planning, life still happens. Maybe your side hustle paused, the market shifted, or you’re just… tired. Your business is sitting in the corner, quiet and collecting digital dust. The question is: “Should I deregister my company if it’s dormant?”
Let’s talk about dormant companies, what to do with them, and when to pull the plug.
First, what does “dormant” even mean?
A dormant company isn’t actively trading or earning any income in business talk. You’re not selling, hiring, invoicing, or hustling quietly in the background. It exists on paper but in reality? It’s taking a nap, and that’s fine. Life changes, projects stall, but CIPC doesn’t exactly care why your business is inactive. If you’ve registered a company in South Africa, you’re still expected to maintain it.
What does that mean, you ask? You’re still required to file your annual returns with the Revenue Services. You must keep your company records current and pay your annual CIPC fees, even if you made zero rands last year.
Deregister my company?
Here’s the real deal. If you know you’re done with the business, and we mean done, it might be time to deregister. That means your company is officially closed. No one will require you to do any admin, and there will be no more CIPC emails and no more return reminders clogging your inbox. But if there’s even a spark of a comeback plan, think twice before shutting the whole thing down.
Ask yourself:
If you’re unsure about deregistering, ask yourself a few key questions: Do you plan to restart the business in the next year or two? Does the company still hold valuable assets like a website, brand name, or leftover inventory? Are you using the business bank account or still trading under the company name in any way? If the answer to any of these is yes, it might be worth keeping the company active, at least for now. At 1-grid, we can help with any of the above. We’re built to keep businesses ready, even if they’re resting, from company registration to domain renewals.
What happens if you don’t deregister or maintain?
Here’s where things get spicy. If your company is dormant and you ignore the admin (like filing annual returns), CIPC won’t forget. They’ll mark your company as non-compliant and eventually deregister it for you. Sounds like a win. WRONG! Forced deregistration can be a real pain; you lose your company name, any business bank accounts may be frozen, reinstating the company later involves a lot of admin, and you could even get flagged for non-compliance with SARS. It’s not precisely the chill vibe you were hoping for.
Okay, so what does deregistration actually involve?
Suppose you’re ready to say goodbye officially. In that case, you must ensure your company has no outstanding fees or liabilities, submit a formal deregistration request to CIPC, and wait for confirmation. It sounds simple, but like most administrative things, it can feel like running a marathon in flip-flops. That’s why some platforms recommend getting help to avoid delays or surprises. And you know who can help with that? Us.
What if you want to keep it, just in case?
That’s not a problem. Keep the company compliant and ready for action by filing your annual returns on time, keeping your contact and director information updated, renewing your domain so it doesn’t expire, and using a custom business email to stay professional, even when things are quiet. Think of it like keeping your business on ice. Ready to thaw. Ready to relaunch.
Final word
Deregistering your dormant company isn’t a light decision. It’s the business equivalent of ending a relationship. If you’re never going back, cut ties cleanly, but if there’s even a slight chance you’ll need that company again, keeping it compliant now can save you a lot of stress later. Either way, at 1-grid, we have your back. Check out our company services and keep your business status exactly where it needs to be.