Answer to Question #312724 in Macroeconomics for lydia

Question

Erica and Ladia are planning to open a business however they are not sure as to the type of enterprise suits them for your knowledge, is it possible to convert a close corporation into a company? If so how should they do it?

Answer 1

Yes it is possible. If the corporation has grown bigger and able to compete with bigger companies in the same market, it can be converted into a company at the Companies and Intellectual Property Commission (CIPC). Converting the corporation into a company will enable to invite other parties to invest as shareholders in the business.

All members of the CC must sign a letter agreeing to convert the CC into a company and become shareholders in the company. If you want to change the CC name, you must reserve a name.