Close Corporations (CC)
Often, we hear of CC businesses or Close Corporations, however, not everyone fully understands it or why it could be a beneficial move to register a CC. A CC is relatively simple to acquire if you have a business, and it allows the business to become its own legal entity. All one has to do is enlist company registration services that will register your business with CIPRO. Your business will receive a registered name and a trading name. The trading name is the name your customers will know the business as. The CC is owned by its members, and this could be one person or several people. They will each have a stake within that business.
The CC is its own legal entity, that means that once the CC was registered, it has the ability to generate revenue and own assets. The revenue and assets that the CC owns will be seperate from the assets of the owning members. The liabilities of the business and the members are separate until there is fraudulent trading activities or fees are owed to SARS.
The traditional sense of a CC is being phased out under the new Companies Act of 2008 and one may no longer register a CC, however, businesses that are already registered as a CC may stay a CC. The next best alternative is to open a private company as this offers many of the same benefits as a CC.
If you have any CC related enquires about your current business, or how to move forward, Dreyer Engelbrecht Attorneys has the expert legal advice. We offer legal information that includes: Company Search, Credit Enquiries, Director Search, Deed Search, Consumer Tracing and Debtor Management.