Have you chosen which business entity is best for your organisation?
All South African businesse are governed by the Companies Act No 71 of 2008.
There are two broad types of companies:
Non-Profit - A company set up for public benefit, or for a purpose relating to cultural or social activities, or communal or group interests, such as religion, sciences, education, arts, charity or recreation. The income and property of a non-profit company should be applied solely to the promotion of the non-profit company’s main objective.
For-Profit - Public (name ends in “Ltd”) or Private (“Pty Ltd”) company - Personal Liability Company (“Inc”) - Partnership - Business trust - Sole proprietorship
Whilst Close Corporations (CCs) may no longer be created, existing CCs will continue to operate until they are converted into companies.
There are various factors that affect the choice of business entity, such as tax, ownership, profit share, etc.
If you’d like to know which business entity would be best for your organisation or need help registering your organisation, contact Boraine Consulting on email@example.com