Leaving South Africa for a new life abroad is exciting, but the legal details you leave behind can cause stress if they are not handled correctly.
Whether you are moving to the United States or another country, taking care of these key items will give you peace of mind and protect you from future complications.
1. Close or Restructure Your Business
If you own a company, do not simply leave it dormant. Here is why:
• CIPC fees: Every company must file annual returns. Miss a return and yearly fees and penalties build. After about two years, CIPC will deregister the company, but the fees and penalties never stop running. If a company owes money when deregistered, directors become personally liable, and this must be avoided at all costs.
• SARS tax: A registered company must file tax returns every year—even a dormant company with no income or bank account. SARS charges monthly penalties and interest until the tax returns are lodged and any outstanding amounts paid, or until the company is liquidated. These amounts double or triple very quickly. Keep in mind that as soon as a company is deregistered the directors automatically become personally liable for the SARS debt to. You need to avoid this.
• Debt remains: Dormant companies keep their debt until it is paid or the company is liquidated.
• A director can be held personally liable for the debt of a company in terms of Section 22 of the Companies Act 2008 if the company does not liquidate and there is debt.
2. Handling this now prevents SARS from starting cross-border collection efforts later which we expect them to do. With a budget of R7billion SARS is busy putting every conceivable measure in place to hunt tax payers down where ever they are. It is therefore to complete remove any SARS debt. The only way to do that is to pay the debt or to liquidate the company.
Your choices:
• Pay all debt, file all outstanding tax returns (expensive exercise) and once this was done, deregister the company with SARS and the CIPC.
• A faster and cheaper option is to liquidate the company without paying any debt (including SARS debt) or lodging any tax returns. Do this before or after you leave the country.
• Sequestrate and get rid of personal debt.
• Transfer or sell the business.
• Resign as director and transfer it to someone in the RSA who can continue with the business.
We assist with all of the above, no matter where you are.
3. Cancel or Update Local Contracts
From cell phone and internet contracts to gym memberships and lease agreements, cancel or transfer every recurring obligation.
We draft proper cancellation letters, settlement agreements, or assignments of lease to ensure you are not billed after you leave.
4. Draft Key Personal Documents
Moving overseas often requires trusting people back home to act on your behalf.
Consider preparing:
• General or Special Powers of Attorney so someone can sign or manage accounts for you.
• Bank signatory authority: Add someone as a signatory to a bank account (with very careful consideration of your choice).
• Last Will and Testament (SA jurisdiction): If you leave assets in South Africa, ensure that your will is up to date. We can assist with this.
• Estate assistance for parents: If you leave aged parents behind who may need their estates wound up in your absence, we can assist.
• Power of Attorney for Property Management: If you will leave property behind with a tenant, give someone a power of attorney to act with the property on your behalf.
• Property management contract: If you leave property that needs to be taken care of, ensure that you have a proper contract with someone who will manage the property for you.
These documents prevent administrative nightmares if something arises once you are abroad.
5. Finalize Asset Sales
If you plan to sell vehicles, furniture, or other assets, use proper sale agreements.
A clear contract protects you if a buyer later claims defects or disputes payment.
We can prepare quick, airtight agreements for cars, property contents, or any high-value item.
6. Why Professional Help Matters
Trying to handle all of these tasks alone while planning an international move can be overwhelming.
We coordinate the entire process—business closures, contracts, and legal documents—so you can focus on your new life instead of South African paperwork.
Author: Nanika Prinsloo
Email : nanika@nanikalaw.co.za
Read more on her website at: www.empowerlaw.co.za.
Sam Busa
