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M The Close Corporation

M The Company
M The Sole Proprietorship
M The Partnership
M Business Trust
M Cooperatives
M The Franchise


  

Note the following questions that you and other

entrepreneurs must ask yourselves before you choose an
enterprise:
½ 
M Do I want to involve another person or persons Forms of enterprises
in the enterprise?
M What are the legal requirements and ½ 
regulations that must be met when starting the
It's all in the name
enterprise?
M Must the enterprise be able to exist
independently of its owners?
M Do I want to be liable for the debts of the
enterprise, and how must the profits be Some success stories - Parcel Express
allocated?
M If I die, should the enterprise continue, and how Some success stories - DOF Alterations
will it function?
M What will my tax situation be?


 
  

The close corporation does not have shareholders, only members who all have an interest in the enterprise. This
interest is expressed as a percentage of all the interests in the corporation.

The total member interest must be 100% at all times.

At the time of founding the close corporation, each member must make a contribution in the form of money, movable or
fixed assets, or services rendered in its establishment or operation. The extent of a member¶s interest does not have to
be in proportion to that member¶s contribution.

Only private individuals may be members of a close corporation (companies, partnerships, societies and clubs are
therefore excluded).

The number of members is limited to 10. A member¶s interest may, subject to certain conditions, be transferred to
others.

A close corporation¶s name ends with the abbreviation µcc¶, and the word µcompany¶ may not appear in the name. The
close corporation¶s name, registration number and the names of members must appear on all business documents.

½


M The law is simple and easy to comply with.

M The close corporation has a simple management and decision making structure. Most decisions are taken
informally.
M All members are part of the management and have a direct interest in the success of theenterprise.
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