Letter to inland revenue 2024 (FREE Download Letter)

Описание: The Companies Act 71 of 2008 provides for two types of companies:
• a profit company; and
• a non-profit company.
Download FREE Inland revenue letter here : https://www.lawyersezyfind.co.za/lawy...

An non-profit company is described in section 1 of the Companies Act as a company: –


‘(a) incorporated for a public benefit or other object as required by item 1(1) of Schedule 1; and


(b) the income and property of which are not distributable to its incorporators, members, directors, officers or persons related to any of them except to the extent permitted by item 1(3) of Schedule 1’.


A non-profit company (“NPC”) does not have as its aim the making of profit, and must be established for a public benefit or for a purpose relating to one or more cultural or social activities, or communal or group interests.


An NPC must use all its income and property to advance and aid its stated non-profit objectives as set out in its Memorandum of Incorporation (“MOI”) - the founding document of the NPC. This means that the NPC may not directly or indirectly pay any portion of its income or transfer any of its property to a founder, director or member - except as reasonable remuneration for goods delivered or services provided to the company, or as reimbursement for expenses incurred in advancing the NPC’s objectives, and so on.


At the dissolution of an NPC, the net value of the company must go to another NPC which has the same or similar objectives as the dissolving NPC (as determined by its members or directors in its MOI) - or if such is not determined in its MOI then as determined by a court.


NPCs used to be incorporated in terms of section 21 of the old Companies Act 61 of 1973 (“old Act”) and was generally known as Section 21 Companies. The Section 21 Company was believed to be a public company with the relevant provisions applicable to public companies also being applied to Section 21 Companies under the old Act.


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