1. What is a Non-Profit Company (without members)?
"A non-profit company is a company incorporated for public benefit or other object relating to one or more cultural or social activities, or communal or group interest. A non-profit company is not required to have members but may voluntarily choose to have members."
2. What is the minimum number of incorporators a Non-Profit company (without members) must have?
A non-profit company must have at least three incorporators.
3. What is the minimum number of directors a Non-Profit company (without members) must have?
A non-profit company must have at least three directors at all times.
4. Who can be a director of a Non-Proft company (without members)?
Any person who is not ineligible or disqualified from being a director by law and who holds a valid identity document/passport. A juristic person cannot be a director of a Non-Profit company.
5. Which legislation and other legal documents govern a Non-Profit company (without members)?
All companies registered in South Africa including private, public, non-profit, state-owned and external companies are all governed by the Companies Act 71 of 2008 and the Constitution of the Republic of South Africa as well as each company's Memorandum of Incorporation. Other legislation is also applicable to companies depending on the industry and category of company the company may fall under.
6. What is a Memorandum of Incorporation?
All companies must have a Memorandum of Incorporation (MOI) which sets out the rules agreed by the incorporators, members, directors and officers of the company for the management and maintenance of the business. Non-Profit companies (without members) may be registered with a standard (Form COR 15.1C) or a customised MOI. The standard MOI is provided by law and is integrated into the company registration process (click here to preview a standard MOI, COR15.1C for Non-Profit companies (without members)). A customised or non-standard MOI allows incorporators, members, directors and officers of the company to impose certain conditions or waive certain requirements. Such MOIs must be attached to the application and may require the assistance of a legally qualified person.
7. Which government bodies does a Non-Profit company need to register with if it wishes to receive grants or donor-funding?
"If you wish to receive grants or donor-funding, you are required to register with the Department of Social Development. Non-profit companies registered with the Department of Social Development can apply for funding at the National Lottery Board as well as apply for tax exemption."
8. How is the income and property of Non-Profit companies managed?
The income and property of a non-profit company is not distributable to its incorporators, members, directors, officers or persons relating to any of them and must be used to advance the purpose for which it was created, as set out in its MOI.
9. Must a company be registered with a corporate name?
A non-profit company does not necessarily need to be registered with a name. The company will then be identified by a unique number followed by the suffix NPC.