CC Registration and Close Corporation Information

Close Corporation versus a Company

Comparing a Close Corporation (CC) to a Company can be difficult.

To make the comparison easier, I suggest that you write down what you want out of our form of business ownership. Do you want the option of expandability, or do you want to manage the business entirely yourself.

There are two types of companies available - they are Private Companies and Public Companies. The table below will help you to decide on the best option. Research and advice from professional business advisors will help you in making the right decision.

Close Corporation Private
Name CC (Pty) Ltd
Propriety Limited
No. of Owners 1 - 10 1 -50 7 - number of shares issued
Name of Owners Members Shareholders Shareholders
Liability Limited Limited Limited
Continuity Unlimited Unlimited Unlimited
Managed By All/some members At least 1 director elected by shareholders Minimum 2 directors, elected by shareholders
Capital Contributed or borrowed by members A maximum of 50 selected shareholders contribute the capital Selling of share to the public
Formation Founding Statement Memorandum & Articles of Association Memorandum, Articles of Association and a Prospectus
Payment to Owners Paid according to % interest held by each member Dividends per share depending on no. of shares Dividends per share depending on no. of shares
Availability of Financial Information Only available to members of the CC Only available to shareholders & perspective shareholders Info freely available to the public. Not confidential - involves many people
Type of Taxation Pays Company Tax Pays Company Tax Pays Company Tax

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