Notice to Customers – Conversion from one type of company to another
- Kindly note that the Companies Act, NO 71 of 2008, does not prescribed a process for conversion from one type of company into another type of company. Customers who need to convert any entity must amend the Memorandum of Incorporation (MOI) of the company to either introduce, delete or amend the criteria for a particular category of company (refer to section 8 of the Act for categories of companies) in such a manner that it meets the criteria for the category of company required. The categories of companies, according to section 8 of the Companies Act are:
- Private company (Pty) Ltd
- Public company (Ltd)
- State-owned company (SOC)
- External company
- Personal liability company (Inc)
- Non-profit company (NPC)
- Section 16 of the Act further provides that when a profit company makes an amendment, it must also amend its name at the same time by altering the ending expression to reflect the category of profit company, which it will now fall under, for example from (Pty) Ltd to (Ltd).
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