Growing number of CC registrations

[RogerH]

Hi, the reality is that CC's are being phased out - I am not even sure if one can register one at the moment (there have been mixed messages from DTI and CIPRO) - you can probably get your hands on one "off the shelf". Secondly most of the benefits of CC's are going to become irrelevant with the New Companies Act - members will pretty much be treated as directors, and the auditing/independent review parameters will benefit everyone in a small company (owner director scenario)... however there are some interesting twists in the New Act since it is pretty much changing the landscape of business in South Africa...

[tec0]

Now that is really interesting, however is just another way for government to keep dabs on the income of businesses or, perhaps allowing for more marketing opportunities. Also if you don’t mind me asking what changes will we see.

One more thing thanks for your post it is really good stuff.

[tec0]

Sometime this year new close corporations (CCs) will no longer be registered when the new Companies Act comes into effect.
The good news, however, is that existing CCs will not be scrapped but will have to adhere to both the new act and the current Close Corporations Act.
Associate partner in Shepstone & Wylie Attorneys, Claire McGee, says the new legislation will have a profound effect on the way business is done in South Africa, and in particular, on the future of close corporations (CC’s).

No new close corporations will be registered, and existing companies will not be permitted to convert to close corporations. The Companies and Intellectual Property Registration Office (CIPRO) will continue to process and implement any applications for incorporation or conversion which it has received, but not processed, by the date when the new Companies Act takes effect,� she says.

Date Posted: January 7th, 2010
Source

http://blogs.timeslive.co.za/common-...-its-too-late/

Ok... this will be an interesting development. However would it be possible to still trade with just a VAT number? Or will this system to be “killed� Secondly anybody know the date that was mentioned in the article?

[Dave A]

However would it be possible to still trade with just a VAT number?

If you as an individual is registered as a VAT vendor, that'll continue. You'll continue to trade as a sole proprietor, blissfully unaffected by all the Companies Act changes. (Personally I think it's a bad idea to register for VAT as a sole proprietor, but perhaps that's another discussion).

As for the changes in the Companies Act, there are interim arrangements which ensure continuity when it comes to CC's. It's not like your legal entity is suddenly going to disappear - at least not for now. A CC has to have an accounting officer and I'm sure said accounting officer will guide the members of the CC through any required changes.

I'm also quietly wondering just how "profound" the effects are going to be. When it comes to "changing the way business is done" in South Africa, I'm inclined to think the Consumer Protection Act is going to be of far greater significance.