Incorporation Registration

What you need to know

A Personal Liability Company or Incorporation is for registered Professionals (Medical Doctors, Engineers, Accountants etc.) who wish to operate through a separate legal entity.  Each Director is also a Shareholder as there is shared liability.  

An Incorporation requires a minimum of 1 Director who will also be a Shareholder with a valid South African Street Address.

You will need 4 company name options for your application.

Good to know

Our price includes 1 Director who is also the Shareholder - add R200 for each additional Director who will also be a Shareholder. 

Price :  R1500
How long does it take?   21 Days

Call Centre
021 595 4433

060 070 2089

Frequently Asked Questions

You will need a valid identity document for all Directors; a South African Department of Home Affairs issued ID card or green ID book. 
This is entirely dependent on CIPC and what their turnaround time is.  Most Incorporations take around 3 weeks to process.   
You will receive the following documents in a PDF format via email:  CoR 14.3 (Company Registration Certificate), CoR 15.1B (Memorandum of Incorporation), Share Certificates, Minutes of the Inaugural Meeting.   These are all the documents you will need to open a business bank account for your company.
A Director runs the company; the Shareholder owns the company and they can be the same person.  For an Incorporation, all Directors have to be Shareholders as it is a personal liability company.  
Yes, absolutely.  Depending on what you would like to do, you can change pretty much everything on a company after its registered as long as you follow the correct procedure.  It is important to advise CIPC of any changes to your company such as address, financial year end and any Director changes.  
Annual returns are a tax levied by CIPC for your company to remain registered with CIPC and comply with company law.  Each year on the anniversary of your company’s registration the annual returns are due even if your company did not trade or made a loss.  The annual returns dues are calculated on annual turnover.  If you fail to settle your annual returns, penalties will be levied against the company.  If the annual returns and penalties continue to remain outstanding, CIPC may start a Deregistration process.  This is the point when bank accounts are frozen and fixed properties become assets of the lender.  You may be able to restore the company if you are still trading.  This is a time consuming and costly process which is best avoided
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Understanding Personal Liability Companies in South Africa: Registration and Purpose

` In South Africa, personal liability companies serve as a distinct legal entity, offering unique advantages and considerations for individuals seeking to establish businesses or organizations with a specific emphasis on personal liability. Its normally registered by Accounts, Lawyers and other professionals. In South Africa a personal Liability Company is called an Incorporation, and we indicate the company type, with the letters INC after the company name.

Introduction to Personal Liability Companies

Personal liability companies represent a specialized form of business structure in South Africa. Unlike traditional companies, where shareholders` liability is limited to their investment, INC hold their members personally liable for the entity`s debts and obligations. This distinctive characteristic shapes the decision-making process for entrepreneurs and professionals considering this business model.

Why you would considering registering an Incorporation

In most cases, individuals do not want to carry personal liability in their businesses. The power of a PTY is that you have limited cover from personal liability so in many cases people would consider a PTY as the normal company choice.. The reason that you would consider registering an Incorporation is because its a requirement for your profession, that you register as a "Personal Liability Company" or "Incorporation". They may request this, as doctors, engineers are expected to carry personal liability as there profession requires an immense amount of knowledge, and lives can depend on their capability.

Trust and Credibility

A group of individuals however might choose to register an Incorporation voluntarily, as it can enhance a business`s credibility and trustworthiness in the eyes of clients, partners, and stakeholders. The commitment to personal liability often signifies a dedication to the enterprise`s success and integrity, potentially attracting investors and fostering long-term relationships with customers.

The similarity between Partnerships and Incorporations

Incorporations are similar to partnerships where the partners are all jointly and severally liable for the liabilities of the company. This means that incorporations do not offer the same limited liability protection as a (Pty) Ltd. The protection for the directors of an incorporation comes in the form of professional indemnity insurance and not limited liability protection

Purpose of Personal Liability Companies

Professional Services

Personal liability companies are commonly utilized by professionals offering specialized services, such as legal, medical, or accounting practices. The personal accountability inherent in this business structure aligns with the ethical standards and regulatory requirements governing these professions, ensuring compliance and integrity in service delivery.

Niche Industries

Certain niche industries, such as boutique firms or artisanal businesses, may find INC`s advantageous due to their emphasis on personalized service and craftsmanship. The inherent accountability associated with personal liability resonates with consumers seeking authenticity and accountability in their interactions with businesses, thereby fostering loyalty and brand differentiation.

Why would professionals register an Incorporation in South Africa

The main reason is to assure the clients that the directors and shareholders of the incorporation are all professionals and regulated by their respective institutes or councils. For example, doctors and dentists are governed by the Health Professional Council of South African and engineers by the Engineering Council of South Africa. These council ensures that quality and ethical standards, accreditation, training of the professions are maintained and enforced. This gives clients seeking their services peace of mind that there is adherence to the relevant professional standards.
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