CC Registration and Close Corporation Information

Forms Of Business Ownership

Deciding on what type of ownership is right for your needs can be a tough decision to make.

In order for a person to make the right decision, they would require the knowledge of the options available to them.

Below is a tabulated comparison between the five options of ownership available to new businesses or entrepreneurs.

The table compares the main points and aspects of each option.

Sole Trader Partnership Close Corporation Private
Name No specific requirements No specific requirements CC (Pty) Ltd
Propriety Limited
No. of Owners 1 2 - 20 1 - 10 1 -50 7 - number of shares issued
Name of Owners Owner Partners Members Shareholders Shareholders
Liability Unlimited Unlimited Limited Limited Limited
Continuity Limited Unlimited Unlimited Unlimited Unlimited
Managed By Owner (does not have to physically be present) All/some partners All/some members At least 1 director elected by shareholders Minimum 2 directors, elected by shareholders
Capital Contributed by the owner Contributed or loans by partners Contributed or borrowed by members A maximum of 50 selected shareholders contribute the capital Selling of share to the public
Formation No requirements Partnership Agreement (P.A)/ Articles Founding Statement Memorandum & Articles of Association Memorandum, Articles of Association and a Prospectus
Payment to Owners All profits paid to the owner Divided between partners according to the Partnership Agreement 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 the owner Only available to the partners 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 Taxed on owners personal capacity Taxed on partners personal capacity Pays Company Tax Pays Company Tax Pays Company Tax

Take the time to make a good choice for your business. Always get advice from business advisors or professional business brokers/advisors as you needs might be different or require more in depth researching.

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