Frequently Asked Questions
Our most common questions and answers we found clients need answers to first.
1What types of companies can be registered in terms of the new companies act 71,2008?
Private companies (Pty) Ltd. Public companies (Ltd). State-owned companies(SOC). External companies. Personal liabilities companies(Inc.).
2What is a state-owned company(SOC)?
State-owned companies were often incorporated or registered under the Companies Act, 1973 but were not recognized in that Act as requiring separate legislative treatment in respect of certain matters to avoid conflict or overlap with other legislation specifically applicable to them, and not to companies. An SOC is either a company defined as a “state-owned enterprise” in the Public Finance Management Act 1of 1999, or is owned by a municipality as contemplated in the Municipal Systems Act 32 of 2000, and is otherwise similar to an enterprise as referred to above. The name of a state-owned company must end with the expression “SOE Ltd”.
3Who qualifies to act as an accounting officer of a close corporation?
The person should be a member of one of the following Accounting and Auditing professions. The South African Institute of Chartered Accountants (SAICA).Auditors registered in terms of the provisions of the Auditing Profession Act, 2005(CA).The Southern African Institute of Chartered Secretaries and Administrators (ICSA).The Chartered Institute of Management Accountants (CIMA).The South African Institute of Professional Accountants (SAIPA).THE IAC who have obtained the Diploma in Accountancy (IAC).The Association of Chartered Certified Accountants (ACCA).The Chartered Institute of Business Management (MCIBM).The South African Institute of Business Accountants (SAIBA).The South African Institute of Government Auditors (SAIGA).
4When should i register for VAT?
The value-added tax (VAT) registration threshold was raised from R300 000 to R1m. You can voluntarily register your business if you make a minimum turnover of R50 000 per year. The VAT application can only be done after the Company has been registered and you have opened a bank account.
5What is a personal liability company?
A personal liability company is comparable to companies contemplated in section 53(b) of the Companies Act, 1973. Its name must end with the word “Incorporated” it meets the criteria for a private company, and its MOI provides that the directors and past directors are jointly and severally liable, together with the company, for any debts and liabilities of the company that were contracted during their respective terms of office.
6What is a public company?
Public companies are comparable to companies of the same status under the Companies Act, 1973.They are characterized by the following:Their MOI permits them to offer shares to the public but restricts limits or negates their right of pre-emption.The name of a public company must end with the word “Limited” or its abbreviation, “Ltd”.A public company must have at least three directors.
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