Types of companies in SA - part 1

TYPES OF COMPANIES IN SOUTH AFRICA – PART 1

In South Africa, there are various types of companies that can be registered, each with its own unique characteristics and requirements. The different types of companies in South Africa are:

1.              Private Company (Pty) Ltd: A private company is the most common type of company in South Africa. It is a legal entity that is separate from its shareholders and directors, and has limited liability, meaning that the shareholders’ liability is limited to the amount of their investment in the company. A private company is required to have at least one director and one shareholder and may not offer its shares to the general public.

2.              Public Company (Ltd): A public company is a company that is listed on a stock exchange and may offer its shares to the general public. It must have at least three directors and seven shareholders. A public company may raise capital by issuing shares or bonds to the public.

3.              State-Owned Company (SOC): A state-owned company is a company that is owned by the South African government. It is usually established to provide essential services such as electricity, water, and transport. An SOC is subject to the same laws and regulations as any other company but is owned by the state.

4.              Non-Profit Company (NPC): A non-profit company is a company that is established for a public benefit or charitable purpose. It is not established to make a profit, and any surplus income is used to further its objectives. An NPC is required to have at least three directors and may not distribute any profits to its members.

5.              Personal Liability Company (Incorporated Association): Its members have unlimited liability, meaning that they are personally liable for the company’s debts.

6.              Sole proprietorship: A sole proprietary company is a business that is owned and operated by a natural person (individual). The owner of a sole proprietorship has sole responsibility for making decisions, receives all the profits, claims all losses, and does not have separate legal status from the business.

7.              Partnership: A partnership is a company where there is a relationship existing between two or more persons who join together to carry out a trade, a business or a profession. The partners are jointly liable for the debts of the partnership.

Should you be in the process of, or inclined to incorporate a company, Tuckers Incorporated can assist with all of the necessary documentation required. Tuckers Incorporated can assist with the registration of the company, preparing the necessary company documents such as the Company’s Memorandum of Incorporation and Shareholders/Members/Partnership Agreement.

Tuckers Incorporated can also assist with the BBBEE compliance as well as POPIA compliance. Should you feel like you would want to discuss this further, or any matter in respect of your business, you are welcome to contact us for information on 011 897 1900, 076 777 1920 or email us on info@tuckers.co.za.

Look out for the Part 2 etc. which will highlight each option in more detail. 

Article contributed by Gareth Sleigh of Tuckers attorneys.