More about CC's

CC registrations make up the majority of our work here at Rapid Business Registrations. The following are some of the common questions about the formation of Close Corporations:

What is the process of registering a CC including turnaround times.

As soon as you have submitted the application form, signed and returned the Limited Power of Attorney and faxed through or emailed your proof of payment, we process the application.

Generally the turnaround times are as follows:

• Approval of name – 2 to 4 working days
• Receipt of Founding Statement – 1 to 4 working days

Although these are the standard turnaround times, these times may vary at times depending on Cipro’s workload.

Can foreigners open a CC

Yes, one or all the members of a CC can be foreigners, as long as the registered address of the CC and that of the Accounting Officer is in South Africa.

If the foreign national has not been issued with a South African ID, an affidavit must be provided stating the following:

• Date of Birth
• Passport Number
• Citizenship
• A statement of the intention to register a CC in South Africa
• The reason why no identity document can be supplied

This affidavit must then be signed and stamped by a commissioner of oaths or a police officer.

What if I am listed with a credit bureau (TransUnion or Experian)

You can register a CC even if you are blacklisted at a credit bureau.

Why don’t you sell shelf CC’s

A shelf CC is not initially registered in your name. You therefore are not able to open a bank account in the name of the CC until you have been registered as a member. This means that you cannot trade in the name of the CC until you have been registered as a member. The member change process at Cipro takes far longer (3 to 6 weeks) than the registration of a new CC (less than a week).

It is for the above reasons that we advise our clients to rather register a new CC

Why Register a C

With the current economic climate being as difficult as it is, more and more South Africans are turning to starting their own businesses , either to supplement their salaries or to work on their businesses full time.

A CC is an ideal business formation for small businesses for the following reasons:

• The administration and legal requirements for a CC are far less onerous than those of a company.
• A CC is a separate legal entity, separate from its members. This means that the liabilities of a CC are separate to those of its members.
• Although it is required that a CC have an Accounting Officer, audited financial statements are not required.
• Meetings are not compulsory and can be held on an ad hoc basis, this is not the case with companies.
• Refer to our frequently asked questions for more detail between companies and CC’s