Company Types in South Africa

Private Company

For-profit company with flexible ownership and limited liability for shareholders. Ideal for startups and growing SMEs.

Directors: Minimum 1 (no upper limit).
Shareholders: 1 or more; shares are privately held.
Suffix: "(Pty) Ltd".
Compliance: Annual Returns (CIPC), Beneficial Ownership, SARS tax registrations; audits depend on PIS.

Non-Profit Company

Public benefit structure for social, cultural, religious, or charitable objectives. Surpluses are reinvested—no profit distributions.

Directors: Minimum 3.
Ownership: No shareholders; may have members.
Suffix: "NPC".
Compliance: Annual Returns, BO*; SARS tax. Eligible for SARS PBO status and Section 18A receipts (*where applicable).

Personal Liability Company

Designed for regulated professionals (e.g., legal, medical, accounting). Separate entity, but directors are jointly and severally liable for debts during their tenure.

Directors: Minimum 1.
Ownership: Can issue shares; profits may be distributed.
Suffix: "Inc."
Compliance: Annual Returns, BO, SARS tax; professional body rules may add obligations (trust accounts, PI insurance).

Compare Company Types at a Glance

Feature	Private Company	Non-Profit Company	Personal Liability Company
Primary purpose	For profit, growth, investment	Public benefit / non-distribution	Professional practice with added director liability
Min. directors	1	3	1
Owners	Shareholders (private)	No shareholders; members may exist	Shareholders
Profit distribution	Allowed	Not allowed (surplus reinvested)	Allowed
Suffix	(Pty) Ltd	NPC	Inc.
Compliance (core)	Annual Returns, BO, SARS tax, accounting	Annual Returns, BO, SARS tax, accounting (if applicable)	Annual Returns, BO, SARS tax, accounting
Audit requirement	PIS-based (often not required)	PIS-based (depends on activities/funding)	PIS-based (often not required)
Best for	Startups, SMEs, investors	Charities, NPOs, community initiatives	Attorneys, doctors, accountants, engineers