Close Corporations (CC’s) has many limitations such as (1) no ability to transfer shares; and the (2) challenge to do business internationally. Not to mention CIPC announced that soon, CC’s will be forced to change over to the Pty format as the Close Corporation Act will become obsolete. It is best for CC’s to convert to Pty Company’s soonest. We will convert your CC into a Pty within the quickest possible timeframe.
CIPC has stopped the registration of all Close Corporations (CC’s) in 2009. Up to 2009 you could register a CC or a Private Company (Pty) Ltd, but under the Companies Act of 2008 these two company formats were ‘merged’ and the Pty Company Format have been used by new companies ever since.
(1) Minimise Risk
An individual is protected when trading under the latest Companies Act of 2008 (CC’s are excluded from this law). You (as the Owner / Director / Shareholder) take much less risk than when you are dealing as a CC or Sole Proprietor.
(2) Imports and Exports
If your company deals with any international clients, a CC will not be recognised as a Company Format most of the time. In this case it is best to convert your CC to a Pty soonest.
Your company owners will now become shareholders and each will receive a certain amount of shares. Pty Companies are more liquid (easy to buy and sell shares) than other Company formations. Via share allocation the Company can consist of 1 to 50 shareholders / directors. This allows the company to get new investors / trade with their shares in the company very easily
(4) Tax Benefits
A Pty Company qualifies to get tax advantages such as:
- Home Office Space
- Auto expenses (car related deductions)
- All business related expenses
- Medical Aid
- Donations / Charity
- South African Business / Home Address.
- Registered Close Corporation
- ID Document / Passport.
You can apply for this service on your Customer Account and complete the required application form. A Consultant from our CIPC Department will be in contact and process your application soonest.
(2) Documentation preparation
Our CIPC Department will then prepare all the documentation required by your Company for this service.
(3) CC to Pty Conversion submission at CIPC
Once documentation is setup we will submit your ‘CC to Pty Conversion’ at the CIPC and await their feedback.
(4) Company Certificate Delivery
After CIPC has converted your Company, the following documents will be made available on your Customer Account (we will notify you via email):
- COR9.4: Name Reservation Certificate.
- COR14.3: Company Registration Certificate (this used to be called the CK1 document for CC’s).
- COR14.1 and CoR14.1A: Appointment of Incorporators and Directors.
- COR15.1A: The Memorandum of Incorporation (MOI) – CIPC’s recommended version.