Largely because of their rarity value but also because we have had to submit two provisional tax returns each year plus an annual tax return and a CIPC annual return with the CIPC fees.
Because we form about 30 shelf companies at a time and this is much more efficient than forming one on its own. You do, however, get the name of your choice.
Because it is near impossible to register a shelf company for VAT.
In terms of the Consumer Protection Act, trading names have to be registered with CIPC. However, CIPC issued a notice to the effect that they do not have the capacity to register trading names until further notice. That was about four years ago. So in the meantime, you can design your letterhead to say “Xyz (Pty) Ltd trading as” in very small letters then “Abc” (your trading name) in very large letters underneath. Do not say “ABC (Pty) Ltd”. But don't forget that we'll do a name change free if you request it when you buy the company from us. We only require that you pay the CIPC fees of R300, we do the work for nothing.
A CC is always owner managed. An owner managed company is not required to be audited or to produce formal financial statements each year whereas a CC must produce financials that comply with International Financial Reporting Standards and are signed off by an Accounting Officer and these are expensive.
Because people are still under the misconception that they are easier and cheaper to run. This is simply not the case.
(Pty) Ltd is a normal private company – the sort that we are all most familiar with.
NPC is a non-profit company (the old s21). You can pay yourself a salary but the shareholders cannot receive dividends.
Ltd is a public company which can offer its shares for sale to the general public (but is not necessarily listed on a stock exchange).
Inc is a professional practice that has incorporated as a company rather than a partnership. These would be typically, medical practitioners, auditors, attorneys.
It protects the growth in the value of an assets from the value at which it first acquired the asset.
The founder’s creditors cannot attack the growth in the assets of the trust and when the founder dies, the trust does not die so its assets are protected from Estate Duty and CGT on death (which together would have amounted to between 1/3 and over ½ of the estate if we ignore the allowances which are there to cater for personal rather than investment assets).
Yes, partially as a trustee who has a vote. But, technically, completely if you are the sole director of the company that owns the assets and the company is owned by the trust. However, we recommend that the director gets the trustees to agree to any significant decisions made by the director.
When you plan to hold investment property (i.e. property earning rental) or financial investments and to recycle the income to build the property or investment portfolio. The trust would be taxed at 41% on the taxable income so it would only be able to re-invest 59%, but if the investments are owned by a company, then it is taxed at 28% and can re-invest 72%.