A Close Corporation (CC) is a simplified and flexible business entity. It is ideally suited to small businesses, and the managerial and administrative requirements differ from a company, in the sense that they are less formal.
A Close Corporation is required to have an Accounting Officer, but audited financial statements are not required.
Close corporations do not require compulsory meetings, as in the case of companies. Not all members of CCs have to take an active role in the running of the business. Close Corporations are governed by the Close Corporations Act 69 of 1984.
Advantages to registering a close corporation (cc):
- No annual returns currently required
- Audited financial statements not required
- All members may take part in management
- Meetings not compulsory and can be held on an ad hoc basis
- Close Corporations (cc's) may become shareholders in other companies
- The legal procedures for registration and administration are kept relatively simple
- The proprietor or member is not personally liable for the debts of a CC
- A CC is a legal entity
Members of a CC
The members of a CC are the registered owners and are listed as part of the registration process.
Non South Africans may be members of a CC, provided that their membership details are authorised by the Registration Office.
A Close Corporation may have a minimum of one member or a maximum of 10 members.
There are no limitations in respect of the number of employees in a Close Corporation.
If the member of a CC is under 21, the registration document must be signed by a parent or guardian.
To register a close corporation, one can either register it through an agent, or you can also do it yourself.
Alternatively, you can also register your business through an agent:
- I want to register my business through an agent