Wind Up Wind Down

Whether solvent or insolvent, a company can decide to liquidate, pay its creditors, and wind up its business operations. Let’s talk about the effects of Liquidation on a company in South Africa and what happens after the order is granted, i.e. to the company, employees, creditors, SARS, directors and shareholders.

When a company in South Africa reaches the end of its operational life, it may consider ceasing its activities. Companies may either consider deregistration with the CIPC or liquidation via a court order. While both result in the company being removed from the official register, they differ significantly in purpose, procedure, and financial implications. In this article, we understand the difference between company deregistration and company liquidation in South Africa.

Winding up a business in South Africa, whether solvent or insolvent, is possible through Liquidation. The Liquidation strategy provides an opportunity to cease your business operations and to sell your business assets to settle the debts. You can also Liquidate if you do not have assets in your business. In this article, we have formulated a step-by-step guide to the Liquidation process in South Africa. Let’s dive in!

Is it possible for creditors to apply for the winding up of a South African branch of a foreign company?