When you are ready to make your business official with the Corporate Affairs Commission (CAC), the first question is which type of registration to choose. The two most common options for small businesses are a business name and a private limited company.
Business name
A business name registration suits sole traders and partnerships who want a simple, affordable way to operate under a registered name. It is generally quicker and cheaper. The owner and the business are not legally separate, so the owner is personally responsible for the business’s debts.
Private limited company (Ltd)
A limited company is a separate legal entity. It can own property, enter contracts and be sued in its own name. It usually gives more credibility with larger clients, banks and investors, but it comes with more compliance obligations.
Questions to ask yourself
- Do I plan to bid for contracts with larger organisations?
- Will I bring in partners or investors?
- How much risk does my business carry?
- Can I keep up with annual filings?
If you are unsure, speak with us before you register. We will help you choose the structure that fits your goals and avoid paying for what you do not need.
Ready to make your business official?
We guide you through CAC registration from start to certificate.