What is a Certificate for Transfer to a Company?
A “Certificate for Transfer to a Company” confirms that a company is legally allowed to own property. It proves that the company follows all rules, has the right approvals, and that its directors can complete the transaction. This document is important when transferring a property from an individual or another business into a company’s name.
What Does the Certificate for Transfer to a Company Do?
- Confirms the Company is Active and Compliant
- The Companies and Intellectual Property Commission (CIPC) confirms that the company is properly registered.
- It shows that the company’s founding document (Memorandum of Incorporation) has not been changed in a way that affects property ownership.
- It lists the current directors and confirms they can legally act for the company.
- Proves the Company Meets Legal and Financial Rules
- It ensures the company is not a share block company, which would require different legal steps.
- It confirms that at least 75% of the company’s capital, assets, or earnings are controlled by South African residents. If not, it must have special Exchange Control approval from the South African Reserve Bank.
- It checks that the company follows key sections of the Companies Act to prevent financial fraud and conflicts of interest.
- Confirms the Company is Financially Healthy
- The certificate states that the company is not bankrupt, under business rescue, or about to shut down.
- It confirms that the directors are not personally bankrupt and can legally make decisions for the company.
- It proves that the company’s board of directors has approved the purchase and followed the correct steps.
- Verified by an Independent Auditor or Reviewer
- A licensed auditor or financial reviewer checks the company’s financial and legal records.
- They confirm the company has no legal or financial issues that could delay the transfer.
- Their signature on the certificate proves the information is correct.
Why is This Certificate Important?
This document helps the conveyancer (the legal expert handling the property transfer) complete the process. It makes sure the company is legally allowed to own property and prevents fraud, financial problems, or legal disputes. Without it, the Deeds Office cannot register the property under the company’s name.
