Close Corporations - South Africa

Close Corporations Key Features

• a Close Corporation (cc) is a legal entity
• Audited financial statements are not required for Close Corporations
• Meetings are not compulsory and can be held on an ad hoc basis
• Close Corporations (CCs) may become shareholders in other companies
• All members may take part in management of the Close Corporations
• The proprietor or member is not personally liable for the debts of a Close Corporations (CC)
• The legal procedures for registration and administration of a Close Corporation are kept relatively simple

Members of Close Corporations (CC)

• The members of Close Corporations (CC) are the registered "owners" and are listed as part of the registration process.
• Any changes in respect of the members of the Close Corporations (CC) must be notified to the Close Corporation Registration Office in Pretoria.
• Non South Africans may be members of a Close Corporations (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.
  However there are no limitations in respect of the number of employees in a Close Corporation.
• If a member of a Close Corporation (CC) is under 21, the registration document must be signed by a parent or guardian.

Can I Convert From a Close Corporation (Cc) To a Private Company Later On?

• Easy to establish and to operate
• The life of the close corporation is perpetual
• Members have limited liability
• Transfer of ownership is easy
• Fewer legal requirements than a private company
• No need for audit

• Members restricted to 10 natural persons
• More legal requirements than sole proprietorship

For guidance, advice and the setting up of a Close Corporation, please use the links below: