What is a Close Corporation?

A close corporation or CC is the simplest and easiest form of business ownership that can be established in the Republic of South Africa. It combines the advantages of both the sole proprietor and partnership with the advantages of a company.

Registering a CC brings you the best of both worlds if you like. A close corporation is a legal person, and has its own distinct legal personality and identity. It also allows the owners to manage and make decisions on the day-to-day operations of the CC, as with the case of a sole proprietor. Only natural, "living and breathing" persons may be owner(s) of a CC. Another legal person such as a CC or a company may not be an owner of a Close Coporation.

This type of business entity is suitable for small to medium sized enterprises who are looking for an easy and inexpensive form of business ownership. All close corporations are regulated by the Companies and Intellectual Property Registration Office (CIPRO) and have to abide by the rules and regulations outlined in the Close Corporation Act of 1985.

Please feel free to browse this blog to learn more about registering a close corporation or CC.