Wind Up Wind Down

When you find yourself in a financial pinch and have exhausted all the options to recover, sequestration or liquidation becomes a prime choice. But what's the difference between the two? In this article, we discuss the key difference between Sequestration and Liquidation in South Africa. Furthermore, we shall also see the key differences in the legal procedure of the two.

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.

When a company or a close corporation in South Africa undergoes liquidation, the South African Revenue Service must be involved for tax purposes. In this scenario, the liquidator also acts as the representative taxpayer on behalf of the company. In this article, we understand the major role SARS plays in the company or CC liquidation process in South Africa.

In South Africa's challenging business environment, many entrepreneurs face financial pressures that can push their companies towards liquidation. When that happens, a common question arises: Can a company liquidate and then start again in South Africa? The short answer is yes, but it comes with important legal and ethical considerations. Understanding what is allowed and what could get you into trouble is key.

In South Africa, the cost of sequestration depends on the complexity of the case as well as specific legal fees. Here is a detailed explanation of what to expect.

Bankruptcy and insolvency are related but are different. While a bankrupt person is insolvent, an insolvent person is not necessarily bankrupt. Below, we explain the difference and how an individual can declare bankruptcy in South Africa.