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Section 21 Company

These are companies that are registered to provide services and do not intend to make, or to be judged by, the profits that they make. These "Associations Not For Gain" are often funded by donations and foreign funding. Generally they provide services to various "communities" such as children's feeding schemes, organisations that take care of AIDS orphans, religious and charitable organisations ect.

These companies are registered in terms of Section 21 of the Companies Act and are often referred to as "Section 21 Companies". A Section 21 company must have a minimum of 7 members and at least 2 directors.

Due to the complexity of the compilation of the Memorandum and Articles of a company, the services of a legal practitioner should be used in the preparation of the documentation.

Note: A Company Not For Gain is also referred to as an "Association Incorporated under Section 21"

The documentation for the registration of a "Company not for Gain" (Section 21 Company is as follows:

Documents Purpose Fees
CM5 Application for reservation of name R50-00
CM22 (in duplicate) Notice of registered office and postal address None
CM29 Consent of registration of directors, auditors and officers None
CM31 Consent to act as an auditor None
Power of Attorney Authorisation to sign on behalf of members/directors None
CM51 Certification of additional copies of documents lodged (optional) R15-00

The following documents will make up the Memorandum and Articles of Association:

Company Category Documents Purpose Fees
Company limited by guarantee, or association incorporated by Section 21 CM3, CM4, CM4B, CM44, CM44B, CM44C Company adopting Table B

Certificate of incorporation and memorandum of association and articles of association in terms of the companies act.


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