WHEN CAN I DEREGISTER A COMPANY OR CLOSE CORPORATION?
Do you know what to do if you need to deregister or close a corporation??, our Corporate Lawyers will explain you all the steps you need to take in order to do it
- At the request of the members or directors;
- Liquidation application by members, employees or a creditor;
- At request of CIPC:
- when company or cc fails to submit their prescribed annual returns;
- When found that company or cc has been inactive for at least 7 years and no person has demonstrated interest in continued existence of company or cc;
- Where registration of company or cc is transferred to a foreign jurisdiction.
SELLING / BUYING OUT SHAREHOLDERS
In most circumstances, the majority shareholder wishes to buy out the minority shareholders to ensure they are the sole remaining shareholder of that company.
There are two options available to dispose of a share in a company.
- Sell shares to purchasing shareholder; or
- sell shares back to company (“share buyback”).
The most efficient manner, in terms of tax, is always number 2 above, where the seller is a juristic person itself.
Where the shares are sold to another shareholder directly, capital gains tax becomes payable by the seller.
Where a share buyback takes place, the dividend received by the company is exempt from dividends tax.
However, it is still always recommended to seek professional assistance or advice when a buyout of shareholders is required to ensure that the most tax effective manner is carried out.