In terms of Section 1 of the Companies Act, Act 61 of 1973, a company is defined as a company incorporated in terms of the relevant provisions of the Act (Chapter iv) or any body which was a company in terms of any law which preceded the present Act.

This is not really a definition of a company. A company can be adequately described in general terms as an association of persons with the common object of the acquisition of gain (although this description does not apply to all companies). As a corporate entity a company, as an association of persons, exists from the moment of registration as a separate legal entity.

On its formation, a company, as a separate entity, acquires the capacity to have its own rights and duties and acquires a legal personality and exists apart from its members.

Numerous forms of companies exist (for example)

1. COMPANIES HAVING A SHARE CAPITAL
   - Public Company (Limited)
   - Private Company (Proprietary) Limited
   - Section 53(b) (Incorporated) Company
2. COMPANIES NOT HAVING A SHARE CAPITAL
   - Companies limited by guarantee
   - Section 21 Companies (Association incorporated under Section 21)
3. EXTERNAL COMPANIES

As to which form of corporate entity is chosen, would depend on particular circumstances of each case and an attorney is best consulted in this regard.

An example of the type of information that would initially be required when intending to register a company is furnished hereunder:-

DETAILS REQUIRED FOR FORMATION OF A COMPANY 

1. COMPANY NAME (please print)

2. MAIN OBJECT 

3. SHARE CAPITAL

The share capital is R_____  divided into ________(number)

• ordinary shares having a par value of R_____ each
• No par value shares
• preference shares

4. NAME OF AUDITORS : (Note Original CM31 by Auditors is required)

5. AMENDMENT OF POWERS

5.1  Exclusion of Schedule Powers:

---

 

5.2  Qualification Schedule 2 Powers (if any):

---

5.3  Special Conditions (if any):

---

6.  FULL DETAILS OF ALL PRE-INCORPORATION CONTRACTS (NB. Original or Notarial copy to be furnished) 

(Tick against choice)

7.  

7.1  Table A
       or

7.2  Table B
       or

7.3  Full set of Articles

If Table A or B is chosen, are there any:-

• Additions

• Modifications

• Omissions

8.  REGISTERED ADDRESS

8.1 Physical Registered Address

8.2 Postal Registered Address 

9.   DATE OF FINANCIAL YEAR END

CM47

10. ADEQUACY OF CAPITAL

10.1 Is the capital of the company adequate  YES/NO

10.2 If no, how is the company to be financed? (Tick if applicable)

10.2.1 shareholders loans
10.2.2 loans from Financial Instituions
10.2.3 Other (please state)

 

DIRECTORS / SUBSCRIBERS (CM29 / CM2 / CM44C)

11. DETAILS OF EACH DIRECTOR AND/OR SHAREHOLDER

11.1   Full Names

11.2   Maiden/Former Names

11.3   ID Number

11.4   Physical Residental

11.5   Physical Business Address

11.6   Postal Address

11.7   Nationality

11.8   Occupation (Not Director of Companies)

11.9   Resident in South Africa  YES/NO

11.10 Number of shares to be subscribed

11.11 Where shareholders is a company: 

Full names of Director who will sign on behalf of Shareholding Company:

Kindly note that an unrehabilitated insolvent cannot be a director of a company.