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The company I work for is in the process of moving from a cc to a pty, what are the 'real' changes - day-to-day changes we should expect? What is the general procedure within the company?
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Probably has to do with he new Companies Act not allowing the registration of any new CC's. It is also generally expected that existing CC's will be given about 2 years in which to convert a another business form, most probably a Pty Ltd.
Operationally for the employee there is no difference. -
Do existing CC's have to convert to a PTY?
I taught they would just remain?Comment
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NO guidance or directive from CIPC or minister on this as yet. The general expectation though is that it will ultimately be required.Comment
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As an employee, no difference at all. The differences between a cc and pty are fairly small and really onyl affect directors and shareholders. You will have a slightly different name on your invoices and letterheads, but can't think of anything else that will be different.Comment
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My understanding is that there is no obligation at all for existing CC's to convert. They can if they want, but don't have to.
There is no time constraint on when this might change.
I think in practice in say 10 to 20 years time when most people have forgotten about CC's, you will find people becoming suspicious of this strange entity and being cautious in dealing with them. Bank staff will be confused and struggle to find the right forms to open account, ditto for municipalities and government organisations. Eventually the members will become frustrated and convert. For now though, there is no need.Comment
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Nope, they would just remain until the members resolve to convert it. Completely voluntary off-course. All that is different, is that there will be no new CC's.
But why not convert? (PTY) Ltd is also now exact like a CC and looks more professional?"Injustice anywhere is a threat to justice everywhere" Martin Luther King, JnrComment
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