Types Of Companies In South Africa

Types of Companies In South Africa

Types of companies in South Africa are incorporated under company law in South Africa. South Africa has made many changes to its country’s trade policies. After reading this article you will definitely come to a conclusion on services, design, and types of companies in South Africa.

The trade policies have made South Africa as one of the most creative continents, and the preferred destination for international investors. South Africa has different types of undertakings. 

Here Is A List Of Types Of Companies In South Africa

The types of companies in South Africa can be subdivided as State firms, private firms, civil liability firms and municipal firms. Private companies are unifying in that they are designed to produce financial returns for investors.

Non-profit Companies

The non-profit company (NPC) may consist of three or more persons and is created for legal purposes only. 

Types Of Companies In South Africa - Non-profit Companies

The target must stop for the benefit or it must have an objective that deals with multiple racial, social or criminal activities or even with the interests of these groups.

It may also include music, culture, education, research, or charity marketing. The NPC’s open lands, whatever they may or may not be dispersed, are official for the members of its administrators or some of these men and women.

All the earnings were early added to NPC’s main objective. When a company dissolves or withdraws it must transfer all remaining resources to another NPC with similar objectives. 

The decision to pass the remainder is purely up to the leaders. The court may interfere if the representatives fail to reach a common conclusion. 

An NPC shall be deemed independent from a non-profit organization abbreviated as an NPO. In addition, non-commercial organizations can register as non-profit organisations.

Profit Companies

This company’s category also includes many subcategories called a for-profit enterprise. The sole purpose of forming Profit Company is to receive financial gains and provide its shareholders with dividends. 

Public Companies

A new type of corporation was introduced which would be licensed as part of the 2008 Act. As for the law on public financial management, the corporation belongs to the state or it can even belong to the municipality, as shown in the conduct of municipal systems. 

In financial terms, public corporations are very similar to public companies.

Private Enterprise

Private society must have at least one member, and is not necessarily state-owned. This company’s founding document should not sell shares to the public, and should restrict the securities ‘ transferability. 

Types Of Companies In South Africa

The Companies Act of 2008 introduced a plan to maintain Pty Ltd’s title from the 1973 legislation, but the first bill abolished Ltd, which is why the next amendment revived it so that the name ends with Pty again.

Corporations Are Liable For Responsibility: Types Of Companies In South Africa

This activity is considered the successor to the 1973 rule. The corporation that follows a private company’s expectations and whose constitutive act states that it is a private liability company is called a private liability company. 

 Both present and past directors of limited liability companies are responsible for the dates and commitments this corporation has contracted. However a manager’s liability is limited to the company’s contractual debts. 

The Principal is not responsible for the crime. Civil liability company names finish with Incorporated or Inc.

External Company

This form of company can properly be viewed as an intention to carry out commercial or non-profit activities in South Africa, although such activities can be part of one or more employment contracts in South Africa; or engage in a course or action plan in South Africa within six months.

Foreign company branches enjoy legal status in South Africa by virtue of their registration as outside companies but are not recognized as independent legal entities, except for exchange control purposes.

A foreign business will register with the Commission on Business and Intellectual Property within 20 working days of commencing its commercial or non-profit activities in South Africa.

Domesticated Company

A “domesticated company” is defined as a foreign company whose registration was transferred to South Africa and will remain as a company within the scope of company law, as if it had been incorporated and registered in the first place.

Private Company

A sole proprietorship is when the business is owned and managed by just one creator. This is the simplest type of business entity as not separating the company from the operator.

You can assign your business title, and only you have the ability to make business decisions.


Partnership is one of the types of companies in South Africa which refers to two or more co-owners run a business together. Partners will also pool their money toward a shared goal, share expertise and specialized resources and share business success ups and downs.

Pty Ltd-Limited Liability company 

A private company is treated as a separate legal entity, Pty Ltd or a limited liability company. This type of business is then registered as a separate legal entity, even when you start your own business.

The Franchise

A franchise is when the business owner authorizes a third party to enter into the business. It gives you the right, for a fee, to run the business or sell goods and/or services using the company name and systems.

Corporations For The Responsibility

If a corporation is incorporated pursuant to Article 8(2)(c) of the Companies Act, the terms of its constitutive act (MOI) stipulate that the company is jointly and severally liable to directors and former directors.

Of all the company’s liability and commitments, as they were or were negotiated under their respective mandates. This generally involves professions such as accountants and lawyers who use the company law in Article 8(2)(c).

State-Owned Company 

A state-owned company is a company defined in Financial Administration Act 1 of 1999 as a “state company,” or a company belonging to a municipality. Most public undertaking provisions will also apply to public undertakings.

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