Pty Ltd Company vs NPC Company

PTY LTD is the abbreviation meaning Property Limited but you will find that the abbreviation is what is mostly used to refer to this type of company. If you are registering your company as a PTY LTD is means that the company registered is able to trade for profits. It also means that this company is unique from the shareholders and is its own separate legal entity. A PTY LTD in South Africa is then registered as a taxpayer in its own right as like mentioned above it is viewed as a separate legal entity.

The above information is all in accordance with The Companies Act No. 71 of 2008 that outlines a PTY LTD company has to perform rights and duties of its own accord.

NPC stands for Non-Profit Company and this means it is a company that is incorporated for public benefit or it could also be for other object related to one or more cultural or social activities, or communal or group interests.

When owning an NPC the incorporators, members, directors, officers or any person relating to one of the mentioned titles cannot distribute the income or property gained by the company. The income or property must be used specifically towards the purpose for which the company was created, as set out in its MOI (Memorandum of Incorporation).

If you are looking at opening a non-profit company you will need to ensure you have at least three incorporators as well as three directors however you are able to register with or without members as a non-profit company does not have to have members. A member of a non-profit company is seen as the persons who participate in the activities of the non-profit company for example a member in the churches or a member a part of a pension fund. If you are looking at registering your non-profit company without members you may then register with a standard or customized MOI.

Some non-profit companies wish to receive grants or donor-funding, in this case you are required to register the company with the Department of Social Development. When a company is registered with the Department of Social Development they can then apply for funding with the National Lottery Board.