The New Company Act
The new company act comes in effect on the 1st May 2011.

To give you a summary of how it will affect companies in South Africa here is a breakdown (according to our understanding - Though CIPRO is not communicating effectively and are still deciding on the final details)

As of 1 May 2011

- No new CC's will be registered, but all old CC's will continue to function as normal
- We can continue to do CK'2 amendments on your CC - which means change members, and details etc
- Annual Returns will still be required to be done.
- However if you fail to pay your annual returns, and it reaches final deregistration, you will not be able to reregister your CC

- All new companies will be (Pty)Ltd but with some differences
- A full audit will not be required on small companies
----To decide wether or not an audit is required, a point system will be instituted. One point per million turnover and one point per staff member, and another point for every million unsecured debt. At last discussion with cipro, you would need 350 points before an audit is required. In other words small companies will not need an audit.
---New companies will not need to appoint an accounting officer or auditor during registration. (Exact details re accounting for small companies and signing off of the books - we as Swiftreg are still uncertain)
-- Annual Returns will now be submitted with a breakdown of your books (Balance Sheet/Income Statement)

Costs
Although Ptys would normally cost R990 to register, the new pricing structure means that our initial cost will be R360 (For one director and one shareholder) with R10 for each extra director and shareholder.

Directors and Shareholders
As with past Pty's company registration involves listing directors of your company as well as shareholders. Swiftreg will issue 1000 shares for each Pty Registered and during the next few months will expect online customers to allocate all the shares to their shareholders during the registration process. Shareholders, of course, own the company, so in terms of the old CC pattern of two members with say a 70% and 30% split, under the new system will now become two shareholders of 700 and 300 shares.

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