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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…
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What is the difference between a private company and a sole proprietor?
Private company vs Sole Proprietor Ever wondered what the difference between the 2 is? Well, wonder no more!! We will explain the differences and requirements for each below. Sole Proprietor If you trade as a sole proprietor, the individual and the company is the same legal entity. The name of the company will be your own initials and surname trading as the company name. The trading name has to be registered at SARS on your personal income tax profile. A sole proprietor has to compile financial statements consisting of an income statement, balance sheet, statement of owner’s equity and notes to the financial statements. The sole proprietor does not file…
