Close Corporation (CC) Registration in South Africa — What You Need to Know
Last updated: 2026-03-19
No new Close Corporations (CCs) can be registered in South Africa since 1 May 2011, when the Companies Act 71 of 2008 came into full effect. If you are looking to start a new business, you must register as a PTY Ltd, sole proprietor, or other entity type. However, existing CCs registered before this date continue to operate and are governed by the Close Corporations Act 69 of 1984, as amended.
Existing CCs can continue indefinitely — there is no legal requirement to convert to a PTY Ltd. However, conversion is available for CCs that want the benefits of the Companies Act framework, such as more flexible governance structures or the ability to have an unlimited number of shareholders (CCs are limited to 10 members).
If you encounter a CC registration number (e.g., CK2005/123456/23), this indicates the entity was registered before the cut-off. Members of existing CCs have the same tax obligations as a PTY Ltd, and CIPC still administers annual return compliance for CCs.
Step-by-Step Process
Understand the current status
No new CC registrations are possible since 1 May 2011. If you need a new entity, register a PTY Ltd instead.
Verify existing CC status
Check your CC status on the CIPC website to confirm it is still active and in good standing.
Consider conversion to PTY Ltd
File a CoR15.2 form with CIPC to convert. The CC becomes a PTY Ltd, members become shareholders, and the company number format changes.
Update SARS registration after conversion
If you convert, update your SARS registration details to reflect the new entity type and company number.
Key Requirements
- No new CC registrations permitted since 1 May 2011
- Existing CCs may continue operating under Close Corporations Act
- Conversion to PTY Ltd optional — not mandatory
- Existing CCs must file CIPC annual returns
- SARS tax obligations identical to PTY Ltd
Fees & Costs
- CC to PTY Ltd conversion (CoR15.2)R175
- CC annual returnR100
- Attorney fees for conversionR3,000–R10,000
Non-Compliance Penalties
- Attempting to register a new CC: application will be rejected
- Failure to file CC annual return: R100/month late penalty
- Sustained non-compliance: CIPC deregistration
Frequently Asked Questions
Can I still register a CC in South Africa?
Must I convert my CC to a PTY Ltd?
What is the difference between a CC member and a PTY Ltd shareholder?
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