What is a close corporation?

A close corporate is a limited liability entity which is much easier to incorporate and will give any business a good professional image. It is very acceptable for any small business intending to do business with both the private and public sector.

A cc is a lot simpler to incorporate and its financials do not have to be audited by a firm of chartered accountants.

A new close corporation takes on average one month to register (this includes name reservation and lodgement of the founding statement).

Differences between a cc and a (Pty)Ltd are described below:

(Pty) Ltd	Close corporation
The Pty is its own legal person independent of the directors. (Directors do become personally liable under certain circumstances)	The cc is its own legal person independent of the directors
Can have a maximum Of 50 directors	Can Have A Maximum Of 10 Members
A Pty can be a shareholder in another company	Pty's cannot have interest in a cc.
Comprise Of Directors And Shareholders	Comprise Of Members
Has a Memorandum	The Founding Statement is much easier to understand
Articles Of Association need to be registered	Articles Of Association are not required
Articles Of Association need to be registered	Articles Of Association are not required
No annual returns to be lodged.	No annual returns to be lodged.
Has a Share Capital	Has Member's Contributions
Has An Auditor (has to be a firm of Chartered Accountants)	Has An Accounting Officer (No need for a firm of C.A's)
Members Hold Shares	Members Hold Member's Interest
Limited Liability	Limited Liability

To order your cc or (Pty)Ltd please click here