cc to Company Conversion
With the new Companies Act the option of a Close Corporation has fallen away. You can however convert you cc to a Pty .
Here are some of the differences and advantages but we suggest that you seek professional advice before deciding.
What is a Pty Ltd company in South Africa?
A Private Company (Pty limited) is treated by South African law as a separate legal entity and has to register as a tax payer in its own right. A Private Company has a separate life from its owners and is required by the The Companies Act, No 71 of 2008 to perform rights and duties of its own.
What is a close corporation?
A close corporation is a corporation that is exempt from a number of the formal rules usually governing corporations. Due to the small number of shareholders it has, a close corporation can generally be run directly by the shareholders (without a formal board of directors and without a formal annual meeting).
|Maximum of 10 members
||Maximum of 50 shareholders
|Companies can not be members
||Companies can be shareholders
||Auditor (Chartered Accountant)*
|28% tax rate
||28% tax rate
|No annual return needed
||Compulsory annual return to be lodged
|No AGM required
||Must convene an AGM
Please complete the form should you require this service.