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The importance of shareholding of a private company.
There seems to be confusion about what is the difference between a director and a shareholder. The article will attempt to explain how it works and the importance of getting the paper work up to date as soon as a private company is registered. Director vs Shareholder Being a director of a company doesn’t automatically make you a shareholder. A director is seen as merely an employee of the company that has to attend to the day to day running of the operation. This is where the shareholders come in. They are the owners of the shares of the company, thus making them the owners of the company. They have…
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Company Income Tax Returns
How the process works. 1. Determining whether the company has a public officer Whether your company has a public officer appointed at SARS, will determine whether you can get access to eFiling. Without access to eFiling, it is not possible to submit your tax returns. All private companies, close corporations and non profit companies need to have a registered public officer at SARS. We can assist you to appoint a public officer at SARS. This is a very important step to take for all new companies, as well as for companies that are a few years old and have never submitted tax returns. This process can take up to 21…
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How does beneficial ownership work?
CIPC has incorporated a new process where companies need to submit their beneficial ownership to CIPC. This basically contains the details of any shareholder which holds more than 5% shares in a private company, or has more than 5% membership in a close corporation. This refers to amendments of the companies act 71 of 2008. Failure to submit the information will put the company in violation of the companies act of South Africa. The beneficial ownership falls into 2 categories, namely: Affected companies Affected companies refer to private companies who are controlled by or is a subsidiary of a regulated company. Non affected companies with beneficial ownership This is the…