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Thread: Shelf or newly formed company??

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    Shelf or newly formed company??

    Hello,

    we want to start a company in South Africa and set up a Pty (as setting up CC's seems to become more difficult).
    We are doubting either to buy one from the shelf or form a new one. For time reason a shelf company has some advantages.
    However, as we understand that if you do buy a property and have not registered the (Pty) before you buy the property and buy it in your names representing (Pty) Ltd to be formed, this has to be written into the articles for the new (Pty) Ltd stating that the new (Pty) Ltd will accept this. For this reason you have to establish a new company and can not buy a shelf company.
    Can anybody elaborate a bit on this?

    Thanks in advance,
    Hans

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    Platinum Member sterne.law@gmail.com's Avatar
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    Not sure as to the reasoning people have provided that a cc is more difficult to form than a pty. A large majority of people purchase buildings in a cc. There are a number of differences of particurar importance is the financial liability. A cc is easy to form and is cheaper to run and maintain with less stringent legal requirements than a pty
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Gold Member daveob's Avatar
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    I personally used www.swiftreg.co.za a few years back to purchase a shelf company ( cc ) and was extremely pleased with the service and the result.

    No, I do not have a finger in that pie - I just hate waiting for anything and got really great service from them, so their name stays in my mind.
    Watching the ships passing by.

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Dutch2011 View Post
    However, as we understand that if you do buy a property and have not registered the (Pty) before you buy the property and buy it in your names representing (Pty) Ltd to be formed, this has to be written into the articles for the new (Pty) Ltd stating that the new (Pty) Ltd will accept this.
    As long as the articles allow for the ownership of property, I can't see the problem. The decision to buy a specific property would be governed by resolution of the directors and perhaps need to be ratified at a general meeting of shareholders, depending on the articles and other resolutions of authorisation that might have been made. It certainly isn't the level of detail you'd include in the articles of association! (You could of course, but it would seem unwise).

    There is an argument that forming a new company is actually quicker than buying a shelf company and amending the details anyway. Just can't remember where I read it - but it made sense at the time.
    The trouble with opportunity is it normally comes dressed up as work.

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    Thanks Anthony, I seem to have been unclear. What I meant with this part is that setting up a CC won't be possible anymore soon.
    br Hans

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    @ Daveob,
    thanks will check them out. Wouldn't care if you had a finger in the pie, as long as they perform.

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    @DaveA, thanks, I concur with your first paragraph. I should look at the the articles of association and see if they would allow that.
    Setting up a new CC might go quicker than a shelf one, in case of Pty I understand that setting up a new takes 4-6 weeks and making a shelf one active would be more a matter of days.
    br
    Hans

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    Platinum Member sterne.law@gmail.com's Avatar
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    Correct the New Companies act does away with the cc. In turn there will be a few variations on PTY Ltd structures. However one can still form a cc and they will continue to operate and a phase out period will be allowed.
    If this is your concern it may make sense to form the cc and then alter it to the relevant structure once the new act takes effect, being October.

    PS: Dave, the info of changing details is as quick as forming a new cc was on TFSA, probably about a month or 2 ago.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Helpfull Anthony,cheers

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    Platinum Member SilverNodashi's Avatar
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    I've used http://www.shelfcompanywarehouse.co.za a few times before with very good service. They can do anything
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