You probably know that under the new Companies Act 2008, CC’s (Close Corporations) can no longer be registered in South Africa.
This does not affect the about 1,500,000 CC’s already registered in South Africa (far more than Pty Ltd companies). If you already have a CC, you may keep it, retain your assets/property in it and run your business through it. You may change its name, members, accounting officer and other details, or you may sell the CC to someone else or convert it into a Pty Ltd company.
The way we see it, there should be no mad rush to change your CC into a Pty Ltd company unless:
- You prefer your business to look like a “(Pty) Ltd” company and not a “CC”
- You prefer the legislation for the new Pty as against the old CC legislation (which incidentally has been somewhat revamped)
- You are tired of putting the owners of the CC under “Members:” on your letterhead
- You’d prefer to list the “Directors:” on the letterhead and not the owners/ shareholders of the company which include parties (people, companies or trusts) who are not directors.
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