Personal Liability Company

A Personal Liability Company (shown as (Inc) at the end of its name) is a special type of company used mainly by professionals in regulated fields.

In this setup, the directors of the company are personally liable for the debts and obligations of the business even after they leave.

This structure is typically used by:

It’s often a requirement from the professional council or licensing body that governs the profession.

"How is an (Inc) different from a (Pty) Ltd?"

In a (Pty) Ltd, the company is a separate legal entity, so your personal assets are protected.

In an (Inc), directors are personally liable for the actions and debts of the company.

That means you can be held responsible even in your personal capacity.

This structure exists to ensure accountability in professions where clients rely heavily on your expertise and ethics.

Only if:

You’re in a profession that requires this structure
Your professional council has told you that an (Inc) is necessary for registration or compliance
You’re working in a regulated industry where personal liability is expected

Otherwise, a (Pty) Ltd is likely a better fit because it offers more protection and flexibility for most types of businesses.

Yes.

The shareholders are usually the same people who are also directors and licensed professionals.

Ownership and responsibility typically go hand-in-hand in this setup.

Not necessarily.

The registration and ongoing admin is very similar to a (Pty) Ltd.

However, because you’re personally liable, you carry more legal risk.

So it’s strongly recommended to have: