Business Entity Types in South Africa
A complete guide to all business entity types used in South Africa, from sole proprietorships to public companies. Registration is handled by the Companies and Intellectual Property Commission (CIPC).
Registration: Most business entities are registered with CIPC. www.cipc.co.za
| Type | Description |
|---|---|
| Sole Proprietorship | Informal business owned by one person. No separate legal personality. Owner is personally liable. No CIPC registration required. |
| Partnership | Two or more persons carrying on business together for profit. Partners share liability. Governed by common law. |
| Private Company (Pty) Ltd | Most common formal entity. Limited liability. 1–50 shareholders. Registered with CIPC under the Companies Act 71 of 2008. |
| Personal Liability Company (Inc) | Like a Pty Ltd but directors are jointly and severally liable. Used by professionals (auditors, attorneys). Suffix 'Incorporated'. |
| Public Company (Ltd) | May offer shares to the public. Requires at least 3 directors. Listed on JSE or unlisted. Higher compliance requirements. |
| State-Owned Company (SOC Ltd) | Government-owned entity registered under the Companies Act. Examples: Eskom, Transnet, SAA. |
| Non-Profit Company (NPC) | Incorporated not for gain. Objects must be public benefit. Registered with CIPC and may register with SARS for tax exemption. |
| Close Corporation (CC) | Legacy entity type (no new registrations since 2011). 1–10 members, members' interest instead of shares. Many still active. |
| Co-operative | Owned and controlled by members who use its services. Registered with CIPC under the Co-operatives Act 14 of 2005. |
| External Company | Foreign company registered to do business in South Africa. Must register with CIPC within 20 business days of starting operations. |
| Trust | Assets held by trustees for beneficiaries. Not registered with CIPC - registered with the Master of the High Court. Inter vivos or testamentary. |