All companies in South Africa needs to be registered in terms of the Companies Act, 71 of 2008
For more information on how it works you can visit THIS LINK
In summary – if you want to start your own business and you want partners or shareholders to help you fund your new business you basically have three options.
Option 1. Start a partnership – also called a Personal Liability Company (Inc) with partners who has enough cash to invest in the business.
Option 2. Register a Private Company [(Pty) Ltd] with partners (directors and shareholders) who share your ideas and who has money to invest in your venture in return for a slice of your profits.[A private company trades for profit. It may not offer its shares to the public and the transferability of its securities is restricted. It may be incorporated by one or more persons.]
Option 3. Start (register) a Public Company (LTD) and issue shares to the public for a share of the profits and payment in dividends. [This is a company that operates for profit. It is allowed to offer its shares to the public. All listed companies must be public companies but not all public companies are listed on a stock exchange. It may be incorporated by one or more persons.]
For more information on the Companies Act please visit CIPC Here.