News - New Companies Act:

New Companies Act:

The future of Close Corporations

Registration of Close Corporations (CC) will cease under the new Companies Act which comes into effect on 1 May 2011; however currently registered Close Corporations will still be maintained.

The new Companies Act provides for the continued existence of currently registered Close Corporations (CC), but negates any further registrations of new CCs. All existing CCs registered with the Companies and Intellectual Property Registration Office (CIPRO) as of the effective date of the new Act (1 May 2011) will continue to exist, and all amendments to CCs will be accommodated by the new Companies Intellectual Property Commission (CIPC) which is scheduled to be implemented at the same time that the act is put into effect.

Conversion to private company

The new Act does not force Close Corporations to convert into companies, however due to simplified legislation, reduction of regulatory burden, and simplicity of formation – this is encouraged. The Private Company will replace the CC as the preferred vehicle for small and medium businesses under the new Act.

The Companies and Intellectual Property Commission

As provided for in the New Companies Act 71 of 2008, CIPRO and the Office of Companies and Intellectual Property Enforcement (OCIPE) will join to form a Commission on the 1st of May 2011. The Commission will be known as the Companies and Intellectual Property Commission (CIPC).

The Commission will perform the following functions:

Registration of Companies, Cooperatives and Intellectual Property rights: public education and awareness, enforcement, research, legal advisory services and stakeholder management.

Categories of companies

The new Companies Act provides for two categories of companies:



Please view the other news items below:

Budget 2012 highlights - click to read more

Changes to provisional tax legislation - click to read more

Changes to travelling allowance - click to read more

Voluntary Disclosure program - click to read more

New Companies Act - click to read more

Implementation of the Companies and Intellectual Property Commission - click to read more

SARS – changes to bank details - click to read more

New Consumer Protection Act - click to read more

New Consumer Protection Act – registration of business trading names - click to read more

New Tax Administration Bill, 2011 penalties - click to read more




Useful Links

SARS - www.sars.gov.za

New SARS penalties - www.sars.gov.za

2010/2011 logbook - www.sars.gov.za

Department of Labour - www.labour.gov.za

Department of Trade and Industry - www.thedti.gov.za

CIPC - www.cipc.co.za

Southern African Institute For Business Accountants - www.saibr.org

Currency Converter - www.xe.com


Registered Accounting Officer and Tax Practitioner Table View - Bayside Accounting  |  www.baysideaccounting.co.za