CIPC: Delays in Company and Close Corporation Re-instatements

Posted 08 July 2025 Written by Acts Online
Category Corporate Governance

Brought to you by SA Accounting Academy: The Companies and Intellectual Property Commission (CIPC) has issued an update regarding administrative delays currently impacting the processing of re-instatement applications for companies and close corporations.

In terms of Section 82(3) of the Companies Act, No. 71 of 2008, read with Regulation 40 of the Companies Regulations, 2011, an entity that has been deregistered—typically due to the failure to file annual returns—may apply for re-instatement. The CIPC has indicated that a backlog is affecting the finalisation of these applications, particularly the stage following the mandatory advertisement in the Government Gazette.

The re-instatement process requires strict adherence to procedural requirements to be successful. Practitioners must ensure the following documentation is correctly submitted to mitigate further delays:

  • A completed Form CoR40.5;
  • Certified ID copies of the directors or members;
  • Affidavits confirming the entity was in business or had assets at the time of deregistration;
  • Bank statements for the period of deregistration;
  • Evidence of the advertisement placed in the Government Gazette.

The Commission has noted that the delays are being addressed but has urged practitioners to verify that all outstanding annual returns are filed and paid immediately upon the status of the entity changing to ‘re-instatement process’ to avoid the application being cancelled or further delayed by the automated system.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; impact is channelled through professional service delivery timelines for corporate secretarial tasks and the management of practitioner-client expectations.
  • For your business: Ensure that internal compliance calendars for annual returns are strictly monitored to prevent involuntary deregistration, as the current CIPC backlog makes the remedial re-instatement process significantly more time-consuming than standard filings.
  • For your clients: Advise clients with deregistered entities that they are legally prohibited from concluding business transactions or disposing of property until the re-instatement is finalised, and warn them of extended processing windows for restoring their entity’s legal standing.

Originally published at https://accountingacademy.co.za/news/read/cipc-delays-in-company-and-close-corporation-re-instatements-update-3

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