South African Registrations

PROFIT COMPANIES

PRIVATE COMPANY (popular)

Incorporated by 1 or more persons for financial gain for the shareholders.
Must have a minimum of 1 directors.
This is a business structure for entrepreneurs to run their business with no limit on the number of directors.
Private companies are not allowed to offer securities to the public and is also restricted from transferring its shares.
Registered private companies are granted Proprietary Limited or "(Pty) Ltd” status.
No annual audits required if all requirements are met (e.g. all directors are also the only shareholders of the company).

PERSONAL LIABILITY COMPANY

Incorporated by 1 or more persons for financial gain for the shareholders (owners).
Must have a minimum of 1 directors.
As a professional, you can register a company that you want to be personally liable for.
The Personal Liability Company and its directors, past and present, are jointly liable for any debts and liabilities incurred.
This type of company is registered by professionals such as Doctors, Lawyers, Engineers, Accountants, etc.
Registered personal liability companies are granted Incorporated (Inc) status.
The company name ends with “Incorporated” or “Inc”.

NON PROFIT COMPANIES

Incorporated by at least 3 persons for public benefit, social activities, communal or group Interest, etc.
Must have a minimum of 3 directors.
The primary objective is to be a benefit to the public and not to make profit.
Income/property may not be distributed to the incorporators, members, directors or officers.
Only reasonable compensation for services rendered by them may be be taken.
The name of a non-profit company will end with “NPC”.

Categories of Companies - Profit and Non Profit