The Companies Act is modern law and is adapted to international economic requirements. It is a reliable legal basis for international investors, helping the South African economy to flourish.
Company types provided by law are:
Private Company (PTY),
Public Company (PLC),
Non-Profit Company (NPC),
State-Owned Company (SOC)
The first step in the company registration process is to determine the name of the enterprise, which is reserved at and confirmed within up to 48 hours by CIPC (Companies and Intellectual Property Commission). Within the following six months all the required documents have to be handed in, including a Memorandum of Incorporation.
After approval of the company’s registration, which usually takes two weeks, it is recorded in the company register and is then allowed to engage business.
All legal forms of companies are required to draft an annual report, however; only public companies, state-owned companies and large private companies are subject to extensive reporting duties. Another administrative task for all companies is the filing of tax and VAT returns.