pty\cc and multiple businesses

[AmithS]

Hi Everyone,

I have the following Qs.

1. Can you run multiple businesses under 1 cc \ pty ?
2. Can you change a cc to a pty and vice versa ?

Thanks in advnace

[Dave A]

1. Can you run multiple businesses under 1 cc \ pty ?

At the risk of sounding like I'm nit picking - they wouldn't be seperate businesses then. But you could run multiple brands, divisions etc. within one company.

What you probably need to think about is why you need to compartmentalise the various operations. Commonly this could be for ownership share, management, identity, activity or risk management reasons.

2. Can you change a cc to a pty and vice versa ?

Conversion isn't a problem, except (I forget the exact date for this), I think the window of opportunity to convert to a cc might be closed already; at the very least it's closing pretty soon. The cc structure is going, going, gone.

[garthu]

Hi Dave, please enlighten us (or just me..) cc going going gone!

Are CC's going to be a thing of the past and will everything become Pty?
Thanks

[Dave A]

CC's will be phased out and we'll have private companies instead as per the New Companies Bill. I know we discussed it somewhere before on TFSA, but the best I could find now was this CIPRO notice which covers the transitional arrangements.

[SilverNodashi]

You can't run multiple companies under one CC, BUT you can own many CC's, or differently put, be member of multiple CC's.

CC's are still in operation, but according to CIPRO one can't register any new CC's, which I find strange cause I still registered a CC long after that messages was posted. So, how effective is the Act? I don't yet know, nor does my Accounting Officer.

[AmithS]

Thanks everyone for the comments.

Just another Q, so then how does for example company A buy company B ?

Is it that company A becomes the 100% member of company B ?

[SilverNodashi]

well, when companyA aquires companyB, they just perform a member ammendment. simple

..... althought some people feel it's painful, the end process on the CK2 itself if kinda simple. It sometimes mean a LOT of paperwork, but the bottom line is you change the members.

I don't know for a PTY how it works.

[Dave A]

I recall that trusts can be members of cc's nowadays, but can cc's own juristic person entities? (for example, hold an interest in another cc).

[ChrisB]

Correct. No juristic person may be a member of a CC, so a CC may not own an interest in another CC.