CC vs. Pty.

[Wolf]

Hi,

I have currently a CC registered for my business. There is a big company in SA I would like to work with, the only problem is that they don't open accounts for CC's anymore due to past problems.

So what options do I have? Changing into a Pty? If yes, what is the difference? What does it mean in terms of tax or whatsoever?

Thanks

ExoPacific

[Dave A]

The main "pain" that comes with a Pty Ltd is the audit requirement, directors having a clean record and more stringent admin demands. Otherwise it's no big deal really.

Normally the core issue in these situations is credibility. Is there no other way of establishing enough credibility to satisfy them?

[SilverNodashi]

You won't be able to register a PTY with just one, or even 2 members, you need 3 members and a very good track record as well. The auditors also cost more than for a CC

[Dave A]

You won't be able to register a PTY with just one, or even 2 members, you need 3 members...

You're not perhaps thinking about the minimum 3 trustees requirement for a trust to be exempt from the NCA?

[SilverNodashi]

mmm, I could be wrong, but I'm sure the last time I checked, you needed 3 members for a PTY?

[Wolf]

Hm, I don't want anyone else to own a part of my company. Want to be the only shareholder in the company.

I think I should talk with my accountant.

@ Dave
There is nothing I can do, they just don't work with CC's anymore, not even on a prepaid basis.

Btw, I have heard that soon there won't be CC's anymore, is that right?

[Chatmaster]

I think you would find this interesting, CLOSE CORPORATIONS TRANSITIONAL ARRANGEMENTS IN NEW COMPANIES BILL

[Dave A]

Exopacific, you're not going to have a problem converting to a Pty Ltd with a single shareholder. It's when you go for some of the fancy variants such as Section 21 companies that a minimum number of shareholders (and directors) start to kick in.

[Wolf]

Thank you for your answers. I decided to have my company transformed IF this company can offer me good prices to work with.

[BBBEE_CompSpec]

I have all the CK and CM documents. Unfortunately I don't know how to attach them on the Forum. You'll have to give me an email address so I can send them to you.