Should I convert my CC to a company?
When the new Companies Act of 2008 was finally implemented a year later, we could no longer form Close Corporations. But should you convert?
The main reason that CCs fell away was that owner managed companies (and a CC is owner managed) became so similar to CCs that the latter became redundant.
The prinicipal changes were that an owner managed company:
1) Did not need an audit or an auditor
2) Did not need a company secretary
3) Did not need to draft formal financial statements.
Contrast these with a CC which:
1) Does not need an audit, but must have an Accounting Officer
2) Does not need a company secretary.
3) Must draft formal financial statements to International Financial Reporting Standards.
So it is actually less expensive to maintain a company than a CC, so it makes sense to convert.