What type of company should I register?

What type of company should I register?

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What are the pros and cons of the different types of companies you can register?

The different profit companies you can register are private and public companies.  By far the most common category is the private company, which is closely held by a few private shareholders.

The advantage of a private company is that it is subject to less administrative and governance “burdens” than a public company, for example it need not have its annual financial statements audited (unless it is a large private company, depending on its public interest score in terms of the Companies Regulations), it need not have an audit committee or a company secretary.

However a public company is able to offer its shares to the public, thereby raising capital in this way, whereas the transfer of shares of a private company is restricted and it may not offer its shares to the public.

Yaniv Kleitman
Yaniv Kleitman is a senior associate in Cliffe Dekker Hoymeyr’s Corporate and Commercial practice. He has experience in mergers and acquisitions, BEE transactions, mining law and debt and equity finance transactions. Kleitman began his career as a candidate attorney at Cliffe Dekker Hofmeyr and was appointed as an associate in January 2009. He was promoted to senior associate in January 2011. He was awarded an LLB cum laude from the University of Johannesburg.