What type of company are you?

Launching a new company takes courage and hard work. Add the legal red tape to this situation and what should be an exciting new endeavour can become overwhelming chaos. Where do you start? The next couple of blog articles are aimed to offer bite-size info on some of the procedures and laws surrounding company registrations.

Firstly, your company should be registered correctly. What type of company is the most suitable option for you? According to the Companies Act of 2008 your company can either be registered as a non-profit company or a profit company. Profit companies are further divided into: private -, public-, personal liability - and state-owned companies. Let me explain the difference...

Non-Profit Companies

NON-PROFIT COMPANIES (NPC)

These are companies created to help people, protect the environment or support a cause. The objective of an NPC is to benefit the public, not to make a profit.  Non-profit organisations usually involve cultural or social activities, for example churches or charity organisations. The income and property of the company may not be distributed to its members, directors etc., except as reasonable payment for their services.

PRIVATE COMPANIES (Pty) Ltd

This means that the company is owned privately, and so the filing requirements are less strict than those of public companies. Private companies have shareholders and issue stock, but their shares will not be traded on public exchanges.  The business has a legal personality separate from its members. It is owned by one or multiple shareholders and overseen by a board of directors. With the new Companies Act members are not limited to 50, as was the case with the previous Act.

Public Companies

PUBLIC COMPANIES (Ltd)

Public companies are traded on at least one public stock exchange. For this reason public companies have to answer to their shareholders and certain changes will be voted on by the shareholders. They must meet more rigid requirements than private companies and are obligated to publically disclose financial statements and annual reports.

Personal Liability

PERSONAL LIABILITY COMPANIES (Inc)

Professionals such as doctors, lawyers or engineers usually register this type of company. Directors of this company are jointly liable with the company for debts and liabilities arising during their periods of office. 

State-Owned

STATE-OWNED COMPANIES (SOC Ltd)

This is either a state-owned enterprise or a company owned by a municipality. These companies are legal entities created by the government to carry out commercial activities on its behalf. Examples are companies such ESKOM and SAA.

Foreign Companies

FOREIGN AND EXTERNAL COMPANIES

This is a company incorporated outside of South Africa. These companies need to register as an “external company” with the CIPC if they intend to conduct business in South Africa. Any activities such as holding meetings, opening a bank account, opening offices, buying property or  employing locals are considered to be “conducting business” in South Africa. 

Parterships

Other options available to individuals include:

SOLE PROPRIETORSHIP- a business owned by one person who may employ others but is personally liable for all debts incurred by the business. 

PARTNERSHIP- Two or more people operate a business to make a profit. Each partner is liable for debts of the company.

Registering a company might seem complicated and daunting, but with the help of an expert you can avoid legal and financial hassles without having sleepless nights about it. Contact James Grove Chartered Accountants for more advice and information on the subject.

UNASHAMEDLY ETHICAL

The Unashamedly Ethical campaign was founded by South African businessman Graham Power to encourage ethics, values and clean living in communities all over the world. The campaign challenges individuals and local businesses to make a public commitment to good values, ethics and clean living.

James Grove Chartered Accountants is a proud member of Unashamedly Ethical and has made the following commitments:

01. To be honest and ethical in all their dealings.

02. To provide efficient, economic and effective products and services in an impartial manner.

03. To provide all stakeholders with timely, accessible and accurate information.

04. To refuse to elicit, accept or pay any bribes, and to report those who do.

05. To negotiate all contracts with the utmost integrity.

06. To pay taxes, and to pay all creditors on time.

07. To pay reasonable salaries and wages.

08. To submit themselves to just and ethical governing authorities.

09. To remember the poor by investing generously and sacrificially in the broader community. 

10. To collaborate with their peers to impact our community and nation.

 

OUR SERVICE LIST

Let us do the worrying about all your accounting needs, while you have peace of mind, knowing that an experienced, well-informed and ethical CA is looking after your finances.


Our services include...

FINANCIAL MANAGEMENT/ ACCOUNTING

We compile monthly and annual management reports on a timely basis, allowing for improvements and cost savings to be made as soon as necessary. Preparation of annual financial statements is carried out in compliance with the Companies Act. Analyses of companies’ performances are done to identify strengths and weaknesses to assist your business to improve on all levels.

 

RISK MANAGEMENT

We conduct procedure audits to ensure that your company is complying with its own policies. Procedure improvement audits improve productivity, process flow and save time and money. We also provide general risk management advice by assessing amongst others:

• Exchange rate risk
• Inflation risk 
• Insurance risk
• Statutory risk
• HR risk
• Asset safe keeping  

CORPORATE SECRETARIAL SERVICES

We assist you with the registration of your company. This will allow you to make better use of tax concessions. Change of company details can also be taken care of, ensuring legal and statutory compliance. In addition we offer advice on company selection, to allow you to make the best use of tax concessions and to save money. We ensure legal and statutory compliance with regards to Annual CIPC returns  and maintaining the minute book.

CONSULTING

Company valuations can be performed to ensure that assets are sold/bought for the correct amount. We also consult on turn-around management, to allow your business to operate with increased productivity and improved process flow. This will enable you to save time and money and improves risk prevention.

CORPORATE SERVICES

We offer advice on pension fund solutions and medical aid solutions to assist you in choosing the best options to keep your staff motivated with salary benefits. James Grove also gives  intelligent advice on investments, finance options and assist with the preparation of business plans. 

TAX COMPLIANCE

We ensure PAYE, UIF SDL compliance with the Tax Act, to help you avoid penalties and interest, reduce legislator risk. We also take care of  VAT compliance and other general tax compliance. In addition we offer PAYE, VAT and Tax advice to allow you to make better use of tax concessions, reduce legislator risk and save money.

PAYROLL

We offer payroll and payslip solutions in compliance with the Tax Act, to help your company avoid penalties and interest. Besides this, we will also see to your IRP5 certificates and PAYE reconciliations for SARS.

SOFTWARE SALES

We sell accounting and payroll software. 

Please contact James Grove Chartered Accountants should you require any of the above services, or need advice on any other aspects - we will most likely be able to assist you.