TYPES OF COMPANIES

1. PROFIT COMPANIES

PRIVATE COMPANY

Incorporated by 1 or more persons for financial gain for the shareholders. Must have a minimum of 1 directors. This is a business structure for entrepreneurs to run their business with no limit on the

number of directors. Private companies are not allowed to offer securities to the public and is also

restricted from transferring its shares.

Registered private companies are granted Proprietary Limited or "(Pty) Ltd” status. No annual audits required if all requirements are met (e.g. all directors are also the

only shareholders of the company).

PERSONAL LIABILITY COMPANY

Incorporated by 1 or more persons for financial gain for the shareholders (owners). Must have a minimum of 1 directors.

As a professional, you can register a company that you want to be personally liable for.

The Personal Liability Company and its directors, past and present, are jointly liable

for any debts and liabilities incurred. This type of company is registered by professionals such as Doctors, Lawyers,

Engineers, Accountants, etc. Registered personal liability companies are granted Incorporated (Inc) status. The company name ends with “Incorporated” or “Inc”.

2. NON PROFIT COMPANIES

Incorporated by at least 3 persons for public benefit, social activities, communal or

group Interest, etc. Must have a minimum of 3 directors.

The primary objective is to be a benefit to the public and not to make profit. Income/property may not be distributed to the incorporators, members, directors or

officers. Only reasonable compensation for services rendered by them may be be taken. The name of a non-profit company will end with “NPC”.