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IID

Private Companies - their Registration

and Submission Requirements

n the article below, we look at the Companies. This fee is calculated based Characteristics of Private Companies:
basics of a private company: type, on the annual turnover of the company. • They may not offer their shares for
Iregistration, financial reports and Companies must be incorporated sale to the public.
submissions applicable to South Africa. and registered with the Registrar • The number of shareholders is
Private companies exist as separate of Companies (CIPC). Companies unlimited.
legal entities from their shareholders. This incorporated in South Africa must have • They must include the word
means that the directors and shareholders a registered office address and maintain “Proprietary” or “(Pty)” at the end
protect their personal assets, should the certain statutory and accounting records. of the registered name immediately
company run into financial difficulties. Approval of the name of the company before the word “Limited” or “Ltd”
This is not applicable if the directors must be obtained from CIPC before
are found to be carrying on business in incorporation (the choice of name is Registration requirements:
a reckless (gross carelessness or gross restricted by certain criteria; such as A company is incorporated by
negligence) or fraudulent manner. conflicting with existing company names). completing and filing a Memorandum
Once incorporated, a private company The ownership of a limited company of Incorporation (MOI) and a Notice
has an unlimited lifespan provided that can easily be divided up through the sale of Incorporation to CIPC. This is done
the annual returns are submitted, and of shares. The shares can be further used online through CIPC’s registration portal.
the annual fee is paid to the Registrar of as a means of generating capital. Standard versions of the MOI are
included in the Companies Act. A
company may choose to amend the
standard versions of the MOI, as allowed
under the Companies Act, to cater for its
specific circumstances.

Document Requirements for Regi-
stration:
The documents needed to register a
company with CIPC are the following:
• Certified Identification (No older
then 3 month’s); CIPC only accepts
valid ID documents, both sides of
the smart card ID or passport. No
other documents are accepted, being
a temporary ID or an asylum seeker
document.
• Signed digital document for
registration and name registration
(Cor9.4) provided after you submit
the registration online, with name
registration.
• Signed power of attorney/mandate
to lodge if someone does the
registration on your behalf.
• Proof of Residence (No older then 3
months)

18 Issue 259 • dw