Close Corporations...

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 Registration of a New Close Corporation (CC)

The Close Corporation (CC) is a more simplified and flexible business format than a company, i.e. (Pty) Ltd.

It is ideally suited to small, medium and micro businesses. The management requirements for Close Corporations are less formal than for that of a (Pty) Ltd.

The Close Corporation Act has been designed so that the ordinary person would be able to prepare the registration papers and register the corporation by her/himself.

There are, however, additional requirements that needs the assistance of an Accounting Officer or registrered Bookkeeper.Even though a Close Corporation is required to have an Accounting Officer, audited financial statements are not required.

The Companies Act prescribes compulsory meetings for (Pty) Ltd's, such as annual general meetings and audited financial statements. There are no similar requirements for CC's. Meetings are usually held between members on an informal basis.

The members of a CC do not all have to take an active role in the running of the business. Although in most CC's, the “members” are also the managers of the business.

Close Corporations are governed by the Close Corporations Act 69 of 1984 .