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What is a Company?

A company is a legal person which has capacity and powers to act on its own (i.e. the law sees a company in the same light as a natural person).

It is created by the Companies Act 61 of 1973, as amended, which is the machinery that enables the company to be formed for lawful purposes.

There are generally 5 types of companies:

  • A private company generally referred to as a "Pty" (Proprietary Limited Company)
  • A public company is a company that offers to the public and the referred to as Limited
  • A company not for "gain" is commonly referred to as a Section 21 company, e.g. NGO's and religious and charity organisations. 
  • An external company is a foreign company registered in South Africa.  
  • An incorporated company which is registered by professionals e.g. attorneys doctors and auditors, is a company where the directors remain jointly and severally liable for debts, and is generally referred to as a Section 53(b) company.

Registration Procedure
Converting of Enterprises
Closed Corporations vs Companies

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