The companies Act 71 of 2008 replaced the incorporated companies with personal liability companies and section 1 of the Companies Act defined a private company as a profit company that is not a public, personal liability or state owned company.

The exclusion of the personal liability company in the definition of a private company resulted in its exclusion from the income list of entities included in the definition of Small Business Corporation.

SAIPA & SAICA is working with the government and proposing that personal liability companies be included on the SBC list.

National Treasury has already acknowledged that they have made a mistake with this legislation. The challenge is the effective date.

On 14 September 2016, SAIPA appeared to the Finance standing committee in order to plea with them to consider back dating the effective date.

We will keep you informed regarding the developments.

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