When you are ready to take your close corporation (CC) to the next level, you might want to give serious thought to converting it to a private company, also knows as a (Pty) Ltd.
MANY BUSINESS OWNERS have successfully operated CCs for several years and while, as a legal entity, it supports organic growth (i.e. growth in revenue, product, infrastructure and resources), it presents serious limitations to strategic and inorganic growth. When the business is ready to move to the next level of transacting and deal-making, the legal and structural challenges posed by a CC may necessitate the conversion to a proprietary limited (hereinafter referred to as a PTY).
DOES YOUR CC SERVE YOUR STRATEGIC GROWTH PLANS?
Instead of directors and shareholders, CCs are comprised of members who typically are also responsible for the day-to-day operation and management of the business. With its less-complex regulations and simpler financial reporting requirements, operating as a CC may appeal to smaller, simpler or start-up businesses where the members would also form part of the business management. The members hold equity ownership and member contributions serve in the place of share capital.
Denne historien er fra September - October 2017-utgaven av SA Franchise Warehouse.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Denne historien er fra September - October 2017-utgaven av SA Franchise Warehouse.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Why SA Needs More New Franchises
South Africa has over 35,000 franchise outlets that employ more than 300,000 people and with a failure rate that is significantly lower than regular start-ups, franchising holds the key to job creation.
Should You Convert Your CC To A (PTY) Ltd?
When you are ready to take your close corporation (CC) to the next level, you might want to give serious thought to converting it to a private company, also knows as a (Pty) Ltd.
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