Quote Originally Posted by Kevinb View Post
Thank you Dave. The reason why I did not want to form a new business straight away is because you can only register PTY LTD and that also has heavy audit costs at the end of the financial year. This is a small sideline business starting up and we are looking at keeping costs down. Also to open a pty ltd now is very expensive !!
In terms of the new Companies Act of 2008 only certain (Pty) Ltds need to be audited. I'm not sure of the exact implications but I'm pretty sure that your business will qualify as one that doesn't. Your year-end procedures will be similar to that of a CC. I'll look up the appropriate sections in the Companies Act later for you.

I really don't think opening a private company (Pty Ltd) is as expensive or difficult to do as it was before. I would seriously look into that route instead of a shelf CC.