What type of companies that can be registered in terms of the New Companies Act 71, 2008
- Private company (Pty) Ltd
- Public company (Ltd)
- State-owned company (SOC)
- External company
- Personal liability company (Inc)
- Non-profit company (NPC)
What is a private company
Private companies are comparable to companies of the same status under the Companies Act, 1973 and are characterised by the following:
They are subject to fewer disclosure and transparency requirements.
A private company will still be prohibited from offering its shares to the public and the transferability of its shares will be restricted, but it may now have more than 50 shareholders.
The name of a private company must end with the expression “Proprietary Limited” or its abbreviation “(Pty) Ltd”.
The board of a private company must comprise at least one director, or any other minimum number as stipulated in its MOI. Each incorporator is a first director of the company.