Reinstatement of a deregistered company
Hidden in the SABC News interview with the CIPC Commissioner Advocate Roy Voller, was an interesting and profound change relating to reinstatement.
Previously (and still, according to CIPC website) if the company was not trading when it was deregistered and did not own fixed property, it was not possible to reinstate it. That restriction has now, apparently, been removed. Whether they have simplified to whole process of restoration or not is unclear and we are still trying to find out.
In any event, before you rush off to your service provider to get your company back from final deregistration, you must be aware of another risk. SARS have been imposing a R250 administrative penalty every month for every income tax return outstanding. They have been randomly hitting numerous dormant companies and the penalties quickly climb to R30 000 to R50 000.
If you reinstate your company and start trading, SARS can instruct the company’s bankers to hand over any money in the bank account to them, and you will have no warning of this.
I think the best approach in these circumstances would be to prove to SARS that the company has been finally deregistered and apply for a remission of penalties. Once (and if) this is granted, then you can safely apply to CIPC for reinstatement.
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