How to Convert a Close Corporation (CC) to a Company (Pty Ltd)

If your business still operates as a Close Corporation (CC), you might be wondering whether it’s time to convert to a Private Company (Pty Ltd).

Since the new Companies Act of 2008, no new CCs can be registered in South Africa — but existing ones can continue operating or convert to a (Pty) Ltd at any time.

In this guide, we’ll explain why and how to convert your CC to a company, what documents you’ll need, and how Smartbook can handle the full process for you — quickly and correctly.

Why Convert from CC to Pty Ltd?

While CCs were once popular for their simplicity, most modern businesses are now converting to (Pty) Ltd companies because:

• Banks, funders, and tenders often require a (Pty) Ltd structure.

• You can have multiple shareholders, not just members.

• It allows for greater credibility and flexibility in ownership and management.

• You can issue shares to investors or partners.

• You’ll align with current corporate laws under the Companies Act of 2008.

Smartbook Tip: Converting your CC doesn’t change your business tax number or contracts — it’s just a legal structure update, not a new entity.

Can All CCs Convert to Companies?

Yes — all active Close Corporations can convert to Private Companies under the current law.

To qualify, your CC must:

• Be in good standing with CIPC (no outstanding annual returns or penalties).

• Have accurate member information recorded.

• Be able to provide the required supporting documents.

If your CC is deregistered, it must first be reinstated before conversion.Smartbook can assist with that too.

Documents You’ll Need to Convert a CC to a Company 

Before starting, prepare these documents:

Before starting, prepare these documents:

• Certified ID copies of all members

• Completed CoR18.1 and CoR18.3 forms

• A signed resolution approving the conversion

• A new Memorandum of Incorporation (MOI)

• Proof of address for the business

• Latest CK1/CK2 certificate (Close Corporation registration documents)

Smartbook handles all of these for you — from drafting resolutions to filing forms with CIPC.

How to Convert a Close Corporation to a Company (Step-by-Step)

You can file the conversion yourself via the CIPC eServices platform or let Smartbook handle it for you.

Here’s how it works:

Step 1: Ensure Your CC Is Up to Date 

Make sure all CIPC annual returns are filed and penalties (if any) are paid.

You can check your CC status on https://eservices.cipc.co.za.

Step 2: Prepare Your Conversion Documents 

You’ll need to complete and sign:

• CoR18.1 (Application to Convert)

• CoR18.3 (Statement of Conversion)

• A board/member resolution approving the change

• A new MOI (CoR15.1A) for the (Pty) Ltd

Smartbook will prepare all these automatically for you.

Step 3: Submit Your Application to CIPC

Log into CIPC eServices, go to “Companies → Convert CC to Company”, and upload all your documents.

Alternatively, Smartbook can submit them electronically on your behalf to avoid rejections.

Step 4: Pay the CIPC Filing Fee 

CIPC charges a small administrative fee (usually around R250–R475, depending on structure).

Smartbook includes this in our service price — no extra hassle.

Step 5: Wait for Approval and Receive Your New Certificate

Once processed (usually 5–10 business days), CIPC will issue a new Company Registration Certificate (CoR14.3) confirming the conversion from CC to (Pty) Ltd.

You’ll keep the same registration number, but it will now end with “/07” instead of “/23.”

Step 6: Update Your Records 

Once approved, you’ll need to update your details with:

• SARS (so your company record reflects the new entity type)

• Your bank (for KYC and account records)

• Suppliers, clients, and tenders

Smartbook can assist with these updates as part of the process.

How Smartbook Can Help You 

Converting from a CC to a company can get confusing — the CIPC often rejects applications if forms aren’t filled out or signed correctly.

Smartbook makes it simple:

• We prepare all your conversion forms (CoR18.1, CoR18.3, CoR15.1A).

• We draft your resolutions and new MOI.

• We file everything with CIPC and monitor approval.

• We deliver your new company certificate directly to your inbox.

Just send your CC registration number, and we’ll confirm your eligibility and total conversion cost instantly.

How Long It Takes

Step	Timeframe
Document preparation	1–2 business days
CIPC processing	5–10 business days
Smartbook turnaround	Typically under 7 days total

Frequently Asked Questions (FAQ)

1. Can a Close Corporation still operate in South Africa?

Yes, but no new CCs can be registered — only existing ones can continue trading or convert to (Pty) Ltd.

2. Do I get a new registration number after conversion?

No. You’ll keep the same registration number, but the suffix will change from “/23” (CC) to “/07” (Company).

3. Do I need to re-register for tax or VAT?

No. SARS keeps your existing tax number, but you must inform them of the conversion.

4. How much does it cost to convert a CC to a (Pty) Ltd?

CIPC’s fee is around R250–R475, but Smartbook can handle the entire process for you at a once-off service fee.

5. Can Smartbook convert my CC for me?

Yes! Smartbook can prepare all required documents, submit your application, and send you your new (Pty) Ltd certificate.

Final Thoughts 

Converting your Close Corporation (CC) to a Private Company (Pty Ltd) is one of the best ways to modernize your business structure and unlock future opportunities.

With Smartbook, you can make the transition quickly and correctly — no paperwork, no rejections, and full compliance with CIPC and SARS. Convert your CC to a (Pty) Ltd today — Smartbook will handle everything for you, start to finish.