Open Source Content Management

Thought I'd start this topic for those that are just about to register a new business.

As of 1 May 2011 you will no longer be able to register a Close Corporation (CC) - this will be replaced by Private Companies under the new companies act (Act 71 of 2008).

Close Corporations will continue to run indefinitely (as per my understanding)- I thought they may be phased out gradually at some stage.

Will it be cheaper to run a CC than a Private Company.

Should you rush off and register a CC before 1 May, while you still can?

Any other thoughts on Close Corporations (CC's) vs Private Companies and how the new companies act and abolition of CC's will affect small businesses.

CC's have been anincredible success, they are cheap, effective, and flexible. All our clients have been very happy over the years with their cc's. YOu can contact us at 021 5576438 ( speak to me or Chelain) as this is the last 10 days you can buy a fresh cc before CIPRO closes new cc
registrations on 30 April. ( But we will be buying quite a couple for
clients who want them after 1 May !!!) So get yourself a cc if you are planning to start a business ! Quickly !

Mark Anderson
Anderson Whittle Cape Town
021 5576438

Hey Dylan,

Great topic, there isnt clarity on how new PTY's will be registered, but the new commission recognises the need for ease of registration for SMME's and the new forms, which we havent seen are intended to make registration very easy. Yet to be proven

In terms of costs, PTY's will have way less regulation where you can have an independent review or if all the shareholders are directors and they agree there are instances where you wouldnt need to have one at all, just prepare a set of AFS and submit to SARS.

Hope this helps

Hey Dylan

The CC will still be the better option, because of the following.
no issuing of share certificates;
cheaper;
but then on the accounting side the Pty will have a simpler form of accounting structure, not fully audits and even a CFA will be able to sign off the books;
summery by the DTI

Thanks for the input on this topic. As I mentioned, I have seen a number of mySmallBusiness.co.za members commenting that they are about to start / register a business. So it would be great to hear from more of the accountants / bookkeepers on here with regard to what they think about the new legislation and whether the guys starting up now should rush off and register a CC before 1 May.

What about buying a shelf company - well 'shelf CC', now before 1 May??

Would that be a good idea?

Jack the problem about people quickly want to start a CC, is do they know all about a CC.

Someone phoned me last week with the following:
- he start a CC 2 years ago;
- he don`t have an accounting officer;
- don`t have a set of proper books;
- no provisional tax and normal tax have being done;

When I ask him why he went the way of a CC and not a plain sole proprietor, he said the people told him how good a CC is, and set it up for him.

I am afraid the people is just going to start CC`s the last few days and then they either do not know if it is really what they must have or they do apply to the basic principles, like an accounting officer ect.

Hi Mark,

Do you still have any cc's available?

Hi Dylan,

I need some advise. I have done a name reservation with CIPRO about three weeks before it changed to CIPC. Now I am not to sure what I need to do next. I have not received any confirmation on my name reservation. If I do, should I buy a shelf cc and just change the name to the one that I reserved, or do I start a Company? Will I be able to use that specific name for my company? Totally in the dark! Please help if you can.

CIPRO did announce that they would process and grant new CC's registrations that were submitted before 1 May.

Not too sure about the shelf companies, but I'm sure Mark would be able to answer that.