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2. The external business may continue trading while it waits on its Co, R 20. 2 certificate. Foreign nationals must seek expert advice when thinking about external companies, as South Africa does not have double taxation treaties with all nations. If the nation of origin of the foreign entity is not a party to a dual tax treaty with South Africa, then the external business might end up paying income tax two times on the same revenues, which will normally be deadly to the entity's prospects of success.

The Companies Act 71 of 2008, as modified by Act 3 of 2011, governs the development of business in South Africa. The most standard categorisation is the division between business for earnings and non-profit business. Non-profit companies (NPC) Non-profit business are for the advantage of the general public. A minimum of 3 persons are required for incorporation and there are no securities to transfer to the public.

For-profit business Companies for earnings fall under the following categories: state-owned companiesprivate companiespersonal liability companiespublic companies. The unifying quality of all personal business is that they mean to produce financial returns for shareholders. Beyond that, each has the following fundamental unique qualities, noted below. State-owned business An organ of the government owns these companies.

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Private business Private business include several individuals, must have at least one director, and may not use its securities (shares or debentures) to members of the public. As soon as signed up,  New Oaks College  have '(Proprietary) Limited' or '(Pty) Ltd.' after their name. A private business needs to restrict transferability of shares, and restrict the variety of shareholders to 50.

Individual liability Personal liability business include one or more persons and should have a minimum of one director; directors of these companies (whether past or present) are collectively and severally liable for any financial obligations and liabilities sustained by the company. These company types are signed up by specialists such as accounting professionals, engineers and attorneys.

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In the old business act (1973 ), these types of business were described as Section 53(b) business. Public companies Public companies are allowed to use their shares to the public. Management of these business is delegated to a board of directors. When registered, the company's name is followed by 'Limited' or 'Ltd.'.