The Companies Act 71 of 2008 distinguishes between profit and non-profit companies.
A non-profit company is incorporated for public benefit, and its income and assets are not to benefit the organisation’s stakeholders, but rather used to pursue the organisation’s charitable goals.
A Profit company, on the other hand, exists to generate a profit for its stakeholders.
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There are five options available to individuals or groups of people wanting to start and run a company for profit. In short, these are:
1 - Sole Proprietor
2 - Partnership
3 - Private Company (Pty) Ltd
4 - Public Company Ltd
5 - State Owned Company SOC
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For most the choice will be between Sole Proprietor, Partnership or Private Company.
Each of these have pros and cons, and these change depending on your needs. If you are not sure which is best for your business, complete the form on the side and we'll advise and guide you. Otherwise, browse through our YouTube videos for more in depth information and guidance.
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Compliance with the Companies Act 71 of 2008
The Companies Act contains mandatory requirements for all registered companies. These depend on the size and type of company and are managed and recorded by the Companies and Intellectual Property Commission (CIPC).
Below we will look at what is needed for a typical SME, registered as a (Pty) Ltd company.