We assist clients with expert and effective corporate structuring solutions, tailored to the needs of their business needs and planning. Our services include the assessment of business structures and providing strategic advice concerning businesses and corporate entity groupings, reorganising business assets and liabilities to ensure sustainability and long term feasibility, tax advice and the drafting of commercial agreements and implementation documentation.
Which Business Structure is Right for You
The form of vehicle you use to run your business is important for taxation and risk management. When choosing the right business structure you must consider your circumstances, your risk appetite, the size and the nature of intended business activities. Contact Greyvensteins Attorneys in Gqeberha, Cape Town or Johannesburg to discuss the various factors in detail before choosing a legal structure for your business.
The Four Main Types of Businesses in South Africa
Sole Proprietorship
This type of business is not a separate legal entity from the person who owns the business which means that you assume all the risks and benefits that come with operating this business. Your assets are attachable in respect of the business irrespective of whether or not they are used in the operations of the business.
Partnership
A partnership is established between two or more people with a partnership agreement and does not form a separate legal persona which means that every time a partner exists and a new partner joins, the partnership is dissolved and starts anew. The partners have full and separate liability for the debt of the partnership.
Close Corporation
Close corporations have not been issued in South Africa since the Company Act of 2008, however existing Close Corporation can be bought and operated. A CC is a separate legal entity from its members who have respective membership interests expressed in percentages. Members have limited liability in respect of the debts of the Close Corporation.
Company
A company is owned by shareholders who have limited liability for the debts of the company as it is a separate legal entity. However, the Companies Act purports that directors may be held liable if found to have contravened their fiduciary duties towards the company. Companies must be registered with CIPC and the compliance burden can be cumbersome. Contact Greyvensteins Incorporated for assistance with CIPS compliance.
Non-Profit
The goal of Non-profit Organisations (NPO) or Non-profit Companies (NPC)is not to make a profit. Non-profits are established with a mission or goal that guides public benefit, social benefit or cultural activities. These entities do not have shareholders, only members and bear various registration and compliance requirements with which Greyvensteins Incorporated can assist.
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