Non-Profit Company (NPC) Registration
A Non Profit company is a company that is registered with the aim of assisting or promoting the community. It is a company in its own right and falls under the jurisdiction of the companies’ act.
However, it does not have shares. There is no real ownership of the company per say, as the company is for the benefit of the community. There are always supposed to be three directors at all times.
- The primary objective of an NPC is to benefit the public through a particular cause, and not to make a profit. Examples of NPC’s could include churches, charity organizations and cultural organizations.
- The income and property may not be distributed to the incorporators, directors or officers of a non-profit company, except as reasonable compensation for services rendered by them to the NPC.
- Incorporators are the Non-profit Company’s founders or first directors, a minimum of 3 directors are required for registration.
- A NPC may not qualify for funding from the Department of Social Development until the entity is registered on their database as an NPO (Non-Profit Organisation). You can still get funding from all other sources however.
If you plan to register your NPC with the Department of Social Development, you will need to ensure you register your NPC with at least 5 directors as this is a requirement from the Department of Social Development.
Organisations such as SETA prefer to work with a registered NPC rather than an NPO, while on the other hand organisations such as The National Lottery Board will only fund NPO’s or NPC’s that have been registered as NPO’s as well.
Being non-profit does not mean that you will not pay tax. This is a separate request from SARS and will only be granted if you fulfil certain criteria. Primarily that you are not competing in the business world, as if you are a normal enterprise.
To register an NPC, the following documents and information is required:
- The number of directors the NPC will have along with their ID copies (minimum three directors)
- Four proposed names in order of preference.
- The postal and physical address of the company.
- Company contact details (this includes email addresses and Telephone numbers)
- The details of the intended directors. (this includes addresses, contact numbers and email addresses)
- A limited Power of Attorney in which you give us the authority to register a company on your behalf, signed by all intended director/s (which will be sent to you via email once the order is placed).
- A small description about the objectives of your NPC
The A Non-Profit Company (NPC) Registration process is divided into two steps:
- Step 1: Name Reservations will be made, which will take 5-10 business days. However, If there is a delay from CIPC due to excessive workload, the process could take longer.
- Step 2: Once the name has been approved, the Company Registration process will take place, which will take 21-30 business days. However, If there is a delay from CIPC/SARS due to excessive workload, the process could take longer.
Once the NPC has been registered, you will receive the following documents via email or post:
- A registration certificate COR 14.3
- A Notice of Incorporation COR 14.1
- Confirmation of the initial directors appointed to the company COR 14.1A
- Memorandum of incorporation (MOI) COR 15.1C
- B-BBEE Affidavit
Cost for NPC Registration: R 700.00