The main options
| Structure | Best for | Watch out for |
|---|---|---|
| Private company (Pty) Ltd | Trading, limited liability | Director duties and annual CIPC returns |
| Holding company | Ring-fencing assets from trading risk | Group admin and intercompany agreements |
| Trust | Family succession, ownership schemes | Trustees must act independently; Master's Office rules |
When to restructure
- Bringing in a new shareholder or investor.
- Protecting property or intellectual assets from trading risk.
- Preparing for a sale or succession.
- Changing B-BBEE ownership.
Documents that matter
The Memorandum of Incorporation sets the company's rules and overrides a shareholders' agreement where they conflict. Keep both aligned, together with an up-to-date share register and beneficial ownership filing at CIPC.
Common questions
Is a shareholders' agreement required?
It is not legally required, but it is strongly recommended once there is more than one shareholder. It must be consistent with the Memorandum of Incorporation.
Can a trust own shares in my company?
Yes. The trustees hold the shares on behalf of the trust and must act in line with the trust deed.
Do I have to file beneficial ownership information?
Yes. Companies must file and keep their beneficial ownership information current with CIPC.
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Related guides
Last updated September 2026. This guide is general information on South African regulatory procedure and is not legal advice on your specific matter. Dynamic Legal Services (Pty) Ltd is a private legal advisory firm and is not a government department or regulator.