CIPC: Delays in Company and Close Corporation Re-instatements [732d1f]

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 a notification regarding significant administrative delays currently affecting the re-instatement of companies and close corporations.

In terms of Section 82(4) of the Companies Act, No. 71 of 2008, the CIPC may re-instate a company that was deregistered for failing to file annual returns, provided that the entity has filed all outstanding returns and paid the prescribed fees. Similar procedures apply to close corporations under the Close Corporations Act, No. 69 of 1984.

The CIPC has confirmed that high volumes of re-instatement applications (Form CoR40.5) have resulted in extended turnaround times. This backlog impacts the verification process for supporting documentation required to prove that an entity was either in business or had assets at the time of deregistration.

Practitioners are advised that the re-instatement process remains a manual verification task, and the following requirements must be strictly met to avoid further processing setbacks:

  • Submission of a complete Form CoR40.5 with the correct filing fee.
  • Provision of certified identity documents for all directors or members.
  • Affidavits confirming the reasons for the failure to file annual returns.
  • Evidence of the entity’s business activity or ownership of immovable property.

Until the re-instatement is finalised and the status is updated on the CIPC registry, the entity remains legally deregistered and lacks the capacity to perform juristic acts.

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

  • For yourself: No direct individual obligations; impact is channelled through professional service delivery and client communication.
  • For your business: Adjust internal service level agreements and project timelines for corporate secretarial mandates to reflect the current CIPC administrative backlog.
  • For your clients: Advise clients that their entities cannot legally trade, enter into contracts, or access frozen bank accounts until the CIPC completes the re-instatement process.

Originally published at https://accountingacademy.co.za/news/read/cipc-delays-in-company-and-close-corporation-re-instatements-update-4

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