Pty Registrations – What You Need to Know and Who You Need to Turn to
A Pty (“proprietary”) Limited is a private company that is considered legally separate from its owners, in terms of South African law. As such, a Pty Limited have certain rights and must perform certain duties in terms of The Companies Act, No. 71 of 2008. All owners of such a company are considered to be shareholders.
If you are starting up a new private business, you will need to ensure that you familiarise yourself with Pty Limited registrations processes and procedures. It is important to ensure that you meet with all of the requirements and that your business is compliant with the legislative regulations that apply to it. The first step to starting your new Pty is to register it as a legal entity with the Companies and Intellectual Property Commission. Once that is done and your business name selection has been approved, you will need to register with SARS as a tax payer.
It is important to ensure that you register your Pty as soon as possible with SARS so that you can receive your dedicated tax reference number. This must be done by submitting a completed IT77 form no more than 60 days after starting up your new business. This can be done via our professional team at Tax Leaders. We will ensure that all the correct forms are completed and submitted and that all fees are paid in full and on time. With our assistance, your new business can start up and run smoothly unlike the chaos and stress that most people envision being associated with starting a new business.
While there are many different types of companies that you can register, there are a number of perks to registering a Pty Limited and they include the following:
- Limited liability for shareholders. This does not ensure complete protection from liability though. In some instances, where shareholders are reckless or perform fraudulent activity with business funds, personal liability can indeed be attached to the shareholders.
- Transfer of ownership is simpler than other business types.
- Capital can be raised with relative ease.
- No need to file annual financial statements with the Registrar of Companies. These financial statements are also not required to be made available to the general public.
If you are interested in starting up a new business and want to know more about Pty registrations and what is required, consult with one of our professional accounts at Tax Leaders. We are available via telephone and email, or you can set up an appointment.