Question 1

What is a personal liability company (Inc)?

Accepted Answer

A personal liability company, designated by 'Inc' (Incorporated) after its name, is a type of company in South Africa where directors are jointly and severally liable, together with the company, for debts and liabilities contracted during their period of office. This structure is typically required for certain regulated professions.

Question 2

Who should register a personal liability company?

Accepted Answer

Personal liability companies are primarily used by professionals who are prohibited by statute or their professional governing bodies from enjoying limited liability. This includes lawyers (attorneys and advocates), medical practitioners, accountants, engineers, architects, and other regulated professionals.

Question 3

What is the difference between a personal liability company and a private company?

Accepted Answer

The main difference between an Inc (personal liability company) and a (Pty) Ltd (private company) is the liability of directors. In a personal liability company, directors and past directors are jointly and severally liable together with the company for debts and liabilities arising during their periods of office. In a private company, directors generally have limited liability and are not personally responsible for company debts.

Question 4

Will my company be registered for income tax?

Accepted Answer

Yes, when your company is registered with CIPC, it will automatically be registered with SARS for income tax. You'll receive your company's income tax registration number as part of the registration process.

Question 5

Will I get to choose a name for my company?

Accepted Answer

Yes, you'll have the option to select a name for your company. We'll conduct a name availability search and reserve your chosen name with CIPC. If your first choice is unavailable, we'll work with you to find a suitable alternative.

Question 6

Does my company registration include share certificates and a share register?

Accepted Answer

Not as part of the standard package. However, Share Certificates and a Share Register may be purchased separately through our [Share Certificates and Share Register](/southafrica/southafrica-share-certificates-and-share-register) service to ensure complete corporate compliance.

Question 7

How long does the registration process take?

Accepted Answer

The standard registration process takes a maximum of 5 working days once all required information is submitted. Express delivery options may be available if you need faster turnaround. The timeline depends on CIPC processing times and name availability.

Question 8

What information do I need to provide for registration?

Accepted Answer

You'll need to provide: preferred company name(s), details of all directors and their ID documents, details of shareholders and their shareholding percentages, registered address for the company, and information about your professional practice or intended business activities.

Question 9

Can I convert my personal liability company to a private company later?

Accepted Answer

Conversion between company types is possible but involves a formal process under the Companies Act, including special resolutions and CIPC filings. However, if your profession requires a personal liability structure, converting to a private company may not be permitted by your professional governing body.

Question 10

What ongoing compliance obligations will my Inc company have?

Accepted Answer

Your personal liability company must file annual returns with CIPC, maintain proper financial records, file tax returns with SARS, and comply with any additional requirements from your professional governing body. We recommend engaging an accountant and staying informed about Companies Act obligations.

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Personal Liability CompanyRegistration – Inc