Close Corporation (CC)

A Close Corporation (or CC) is an older type of business structure that was very popular in South Africa before 2011.

It was designed to be simpler than a company, with fewer admin requirements and no shareholders, just members who owned and managed the business.

You can’t register new CCs anymore, but existing ones are still valid and allowed to operate.

"Can I still register a Close Corporation?"

No.

Since the introduction of the new Companies Act in 2011, CIPC no longer allows new CC registrations.

The only business structures you can register now are:

  • Private Companies (Pty) Ltd
  • Non-Profit Companies (NPC)
  • Personal Liability Companies (Inc), among others

But if you already have a registered CC, it’s still legally recognised.

"How is a Close Corporation different from a (Pty) Ltd?"

There are a couple of key differences:

  • A CC has members, not shareholders
  • There are no directors, and members manage the business directly
  • CCs were easier and cheaper to maintain, but had limited growth potential
  • A (Pty) Ltd has more formal governance and is better suited for expansion, funding, or long-term planning

"Can I convert my CC into a (Pty) Ltd?"

Yes, and it’s often a good idea if you’re planning to:

  1. Bring in investors or partners
  2. Apply for tenders that prefer (Pty) Ltds
  3. Modernise your business structure
  4. Prepare for future growth

Govchain can help you convert your CC to a Private Company and make sure everything is compliant with CIPC and SARS.

"Is a CC still valid for tenders and contracts?"

Yes.

But some organisations may prefer dealing with (Pty) Ltds, since that’s now the standard business structure.

If you’re using a CC, you may be asked to provide extra documentation to prove it’s still active and compliant.

"Do I still need to file returns for a CC?"

Yes.

You still need to:

  • File annual returns with CIPC
  • Submit tax returns to SARS
  • Keep your member details up to date

CCs may be “old” but they still have legal responsibilities.

"Should I keep running my CC or switch to a (Pty) Ltd?"

It depends.

If your CC works for you and you’re not planning to grow or change anything, you can keep using it.

But if you want to…

  1. appear more modern
  2. bring in investors
  3. simplify compliance in the long run

… switching to a (Pty) Ltd is worth considering.

"How do I convert a CC to a (Pty) Ltd?"

Govchain can guide you through the full conversion process, including preparing the right forms, updating your details, and filing everything with CIPC and SARS.


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