A Pty Ltd is a private company that is trading for profit, a separate legal entity distinct from its shareholders.
A private company (Pty) Ltd cannot offer its shares to the public, has fewer disclosure and transparency requirements and must compromise of at least one director.
A private company (Pty) Ltd can have as many shareholders as it wants. The name of a private company must end with the expression “Proprietary” Limited or is abbreviation “(Pty) Ltd”. It is liable for its debts and creditors cannot sue the shareholders for the payment of these debts. A Pty Ltd can have a minimum of 1 shareholder and has no restriction on the maximum number of shareholders it can have.
Under the new Companies Act the registration process has become simpler for owner managed businesses resulting in lower costs to register.