Companies and Close Corporations South Africa
Bizztax Accountants provides accounting, tax compliance and advisory services for private companies (Pty Ltd) and close corporations (CC) across South Africa.
Companies and close corporations in South Africa
South Africa has two main incorporated business structures: private companies (Pty Ltd), governed by the Companies Act 71 of 2008, and close corporations (CC), governed by the Close Corporations Act 69 of 1984. Both structures provide limited liability protection for their owners, but they differ in their governance requirements, financial reporting obligations and tax treatment. Bizztax provides accounting, tax and compliance services for both structures.
Private Companies (Pty Ltd)
A private company has shareholders and directors, is governed by a Memorandum of Incorporation (MOI), and must comply with the Companies Act. Private companies must prepare annual financial statements, file annual returns with CIPC, and submit income tax returns (ITR14) to SARS. Depending on their Public Interest Score, they may require independently compiled, reviewed or audited financial statements.
Close Corporations (CC)
A close corporation has members (not shareholders) and is governed by an Association Agreement. CCs must appoint an accounting officer to compile their annual financial statements. Although no new CCs can be registered since 2011, existing CCs continue to operate and must comply with the Close Corporations Act, including annual return filing with CIPC and income tax return submission to SARS.
Our Services for Companies and CCs
Annual Financial Statements
We prepare annual financial statements for private companies and close corporations in accordance with IFRS for SMEs or the applicable financial reporting framework. Annual financial statements are required for company tax returns, bank finance applications and CIPC compliance.
Company Tax Returns (ITR14)
We prepare and submit your company's annual income tax return (ITR14) to SARS, reconciling your financial statements with your tax computation and ensuring all allowable deductions are claimed.
CIPC Annual Returns
We file your annual return with CIPC to keep your company or CC in good standing and avoid deregistration.
Accounting Officer Services (CC)
As registered Business Accountants in Practice, Bizztax can act as accounting officer for your close corporation, compiling your annual financial statements and confirming their consistency with the accounting records.
Monthly Accounting and Bookkeeping
We provide ongoing bookkeeping and monthly accounting services for companies and CCs, including transaction processing, VAT returns, PAYE submissions and management accounts.
Frequently Asked Questions
Common questions about accounting and compliance for South African companies and close corporations.
What is the Public Interest Score and why does it matter?
The Public Interest Score (PIS) is calculated annually for every company under the Companies Act. It is based on factors including turnover, number of employees, number of shareholders and the value of third-party liabilities. The PIS determines whether your company's financial statements must be independently compiled (PIS < 100), independently reviewed (PIS 100–349) or audited (PIS ≥ 350 or if required by the MOI or shareholders).
Can I still register a close corporation in South Africa?
No. The Companies Act 71 of 2008 closed the register for new close corporations. New businesses must register as private companies (Pty Ltd). Existing close corporations continue to operate under the Close Corporations Act and are not required to convert to companies, although they may choose to do so.
What are the tax rates for companies in South Africa?
Private companies and close corporations are taxed at a flat rate of 27% on taxable income (reduced from 28% for years of assessment ending on or after 31 March 2023). Small Business Corporations (SBCs) that meet the requirements of section 12E of the Income Tax Act benefit from a graduated tax rate, with the first R95 750 of taxable income taxed at 0%.
When must a company submit its income tax return to SARS?
A company must submit its ITR14 within 12 months of its financial year end. SARS issues an auto-assessment or a return for completion via eFiling. Late submission attracts administrative penalties. Bizztax manages your company tax return to ensure it is submitted accurately and on time.
Related services
Accounting and tax services for your company or CC
Contact Bizztax Accountants for accounting, tax compliance and advisory services for your private company or close corporation.