About converting a close corporation into a company

If your close corporation (CC) has grown bigger and you want to compete with bigger companies in the same market, you can convert it into a company.

Converting your CC into a company will enable you to invite other parties to invest as shareholders in your business. You will thus be able to raise more capital to grow your company.

All members of the CC must sign a letter agreeing to convert a CC into a company and become shareholders in the company to be incorporated. If the CC name will not be changing, then there will be no need to reserve a name.

What you should do

• Complete application forms listed below
• CoR 18.1
  
• CoR 39
• CoR 15.1 A
  
• Submit the following:
• certified passport copies (if foreign national) or certified Identify Document (ID) copies (if South African) of all indicated initial directors and incorporators
• a certified ID copy of the applicant if the application is not made by one of the indicated initial directors or incorporators
  
• if an incorporator is a juristic person, then a power of attorney for the representative authorised by such juristic person to incorporate the company and sign all related documents
  
• if another person incorporates the company and signs all related documents to the incorporation on behalf of any or all of the incorporators and initial directors, a power of attorney and a certified ID copy of such a person is required
  
• company documents
  
• written consent of all members that will be part of the Company
  
• Memorandum of Incorporation (MOI)
  o    letter from the accountant of the CC stating if there were any irregularities reported during their tenure
  
• All the CC members must become shareholders in the company to be incorporated.

Timeframe

It will take between two and four weeks to convert your CC into a company.

How much does it cost

This service is rendered free of charge.

Forms to complete

(Forms are provided in PDF format. To open PDF documents, you need to have Adobe Acrobat Reader 4 or higher installed on your computer.)

• CoR 18.1
  
• CoR 39
• CoR 15.1 A 
• written consent of all members that will be part of the Company
• If the CoR14.1 Annexure D is not filed at incorporation, a CoR44 must be filed within 40 business days after incorporation to notify the CIPC of the details of such officials (if appointing an auditor/secretary and three audit committee members)
  

Who to contact