Application Form:
Register a Personal Liability Company in South Africa
Key Facts About Registering a Personal Liability Company
Purpose: To provide a corporate structure for a professional practice (e.g., law firm, accounting firm) while ensuring the directors remain personally accountable for the company's debts.
Legal Status: Like a Pty company, it's a separate legal entity. However, its key distinguishing feature is that its directors and past directors are jointly and severally liable for the company's debts and liabilities contracted during their period of office. This means a creditor can sue the company, or any director individually, for the full amount of the debt.
Ownership: Owned by one or more shareholders, similar to a Pty company.
Directors: Must have at least one director, though professional bodies may have their own rules requiring more.
Shares: The transfer of shares is restricted, and they cannot be offered to the public.
Name: The company name must end with the suffix "Incorporated" or its abbreviation, "Inc."