From Dormant to Dissolved: Alternatives to Selling

You Have Options. Let's Compare Them.

If you're holding a dormant VAT company, you have three main exit strategies: sell it to us, deregister it formally with CIPC, or leave it dormant indefinitely. Each has pros, cons, costs, and timelines. Let's break them down.

Option 1: Sell to WeBuyVatCompanies

The Concept

You sell the company to us. We become the owner and director. You walk away with cash and zero liability.

Timeline

48 hours from submission to cash in your account.

Costs

ZERO. We cover all legal fees, CIPC filings, and SARS updates. You receive the full quoted amount.

Payout

R5,000 – R50,000+ depending on company age and VAT status. Immediate EFT to your bank account.

Post-Sale Liability

None. Protected by legal indemnity agreement. SARS cannot pursue you for anything post-sale.

Pros

• ✓ Fast (48 hours)
• ✓ Cash payment immediately
• ✓ Zero ongoing costs
• ✓ Complete liability protection
• ✓ No paperwork or follow-up

Cons

• ✗ Lower payout than keeping company (if you plan to trade it later)
• ✗ Non-negotiable pricing (market-based)

Option 2: Formal Deregistration

The Concept

You file a formal deregistration request with CIPC. The company is dissolved and removed from the registry. No ongoing compliance needed.

Timeline

6–12 months from initial filing to final deregistration.

Costs

• CIPC deregistration fee: R600–1,500
• Accountant fees: R2,000–5,000
• Potential SARS penalties: R1,000–10,000 (if compliance gaps exist)
• Total: R3,600–16,500

Payout

None. You pay costs and get nothing in return.

Post-Deregistration Liability

Limited, but not zero. Creditors can still pursue claims up to 3 years post-deregistration. SARS retains audit rights for 7 years.

Pros

• ✓ Company completely gone (peace of mind)
• ✓ No future CIPC annual filing requirements
• ✓ Ownership is clear and final

Cons

• ✗ Long timeline (6–12 months)
• ✗ Costs money instead of earning money
• ✗ Requires active paperwork and coordination
• ✗ Still liable for pre-deregistration issues discovered later
• ✗ SARS can still audit post-deregistration

Option 3: Leave It Dormant

The Concept

Do nothing. Keep the company registered but inactive. File annual returns and pay compliance fees indefinitely.

Annual Costs

• CIPC annual return fee: R1,200–1,500
• SARS compliance costs: R500–2,000
• Accountant/compliance fees: R1,000–2,500
• Total per year: R2,700–6,000

Multi-Year Cost Impact

Over 5 years: R13,500–30,000. Over 10 years: R27,000–60,000.

Payout

None ongoing. But the company retains some residual value (potential to sell later).

Ongoing Liability

Full liability remains. SARS can audit, investigate, or assess at any time. Directors remain personally liable.

Pros

• ✓ Company remains tradeable (if you change your mind)
• ✓ No immediate action needed
• ✓ Avoids deregistration paperwork

Cons

• ✗ Annual fees drain money
• ✗ Ongoing SARS liability exposure
• ✗ Continued compliance burden
• ✗ Risk of CIPC deregistration if filing is missed
• ✗ No financial return

Head-to-Head Comparison

The Math: Why Selling Usually Wins

Scenario: You have a 2010 VAT company worth R30,000

• Sell Now: +R30,000 cash in 48 hours
• Deregister: -R10,000 costs, -R30,000 value = -R40,000 net
• Keep 5 years: +R30,000 potential future value, but -R20,000 in annual costs = +R10,000 net

Selling gives you immediate cash with no risk. Deregistration costs money. Staying dormant costs money and takes up mental energy.

When to Choose Each Option

Choose Selling If:

• ✓ You need cash soon
• ✓ You want the company gone ASAP
• ✓ You don't want ongoing compliance burden
• ✓ You want legal protection post-sale
• ✓ You've never planned to trade the company

Choose Deregistration If:

• ✓ The company has significant legal issues
• ✓ You want total dissolution (no trace)
• ✓ Compliance gaps require resolution anyway
• ✓ You don't need immediate cash

Choose Staying Dormant If:

• ✓ You might trade the company in future (unlikely for most)
• ✓ You're genuinely undecided
• ✓ You don't mind annual costs

The Bottom Line

If you're reading this, you're probably thinking about what to do with a dormant company. The best option for 95% of people is: Sell it to us.

You get cash, you're protected, you're done. No more annual fees. No more SARS worry. No more paperwork. Just money in your account.