PROFIT COMPANIES

PRIVATE COMPANY

  • 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”.