How to Register a Non-Profit Company (NPC) in South Africa

A Non-Profit Company (NPC) is registered with CIPC using the CoR15.2 form, similar to a PTY Ltd but with key differences. The NPC's Memorandum of Incorporation (MOI) must include an objects clause specifying the public benefit purpose, a prohibition on distributing income or assets to members, and a provision that remaining assets are transferred to another NPC or public benefit organisation upon dissolution.

NPCs replaced the old Section 21 company structure under the Companies Act 71 of 2008. They are commonly used by charities, community organisations, educational institutions, religious bodies, and social enterprises. While NPCs can (and often do) generate revenue, all income must be used to further the NPC's stated objects — not to enrich members or directors.

After CIPC registration, an NPC should apply for Public Benefit Organisation (PBO) status with SARS if it qualifies. PBO status provides significant tax benefits: the NPC becomes exempt from income tax on receipts and accruals used for approved public benefit activities. Additionally, donors to an approved PBO can claim tax deductions on their donations (up to 10% of taxable income for Section 18A-approved organisations).