What is a Non-Profit Company (NPC)?
A Non-Profit Company (NPC) is a company incorporated under the Companies Act 71 of 2008 with the specific purpose of benefiting the public or a defined group — not for profit distribution to its members.
NPCs are the most credible and formally recognised type of non-profit organisation in South Africa and are favoured by:
- •International donors and funders
- •Government grant bodies
- •Corporate Social Investment (CSI) departments
- •Religious organisations and churches
NPC vs NPO vs NGO: What's the Difference?
Many people confuse these terms. Here's a clear breakdown:
| Term | What It Is |
|---|
|---|---|
| NPC | Registered with CIPC under Companies Act — has full legal personality |
|---|---|
| NPO | Registered with DSD under the NPO Act — simpler, less formal |
| NGO | Non-Governmental Organisation — generic term, no specific legal status |
| Trust | Registered with Master of the High Court — different governance |
| Section 21 Company | Old term for NPC under the old Companies Act |
For most organisations seeking credibility, international funding, and tax exemption, NPC is the preferred structure.
Requirements to Register an NPC
Minimum Requirements:
- •✅ At least 3 incorporators (founding members)
- •✅ At least 3 directors (can overlap with incorporators)
- •✅ Memorandum of Incorporation (MOI) with non-profit clauses
- •✅ South African ID or passport for all directors
- •✅ Physical address for the registered office
NPC MOI Must Include:
- •Purpose of the company (charitable, educational, etc.)
- •Asset-lock clause — assets cannot be distributed to members
- •Dissolution clause — assets go to another NPC/charity on wind-up
Step-by-Step NPC Registration Process
Step 1: Name Reservation (CoR9.1)
Reserve your NPC name with CIPC. The name will end with "NPC" instead of "(Pty) Ltd".
Step 2: Draft the MOI (CoR15.1B)
The NPC MOI contains specific clauses required by law, including:
- •Non-distribution constraint
- •Membership and voting rights
- •Dissolution provisions
Step 3: Submit to CIPC
Submit CoR15.1B with:
- •Completed CoR14.3 (Notice of Incorporation)
- •Director details
- •Payment of R175 registration fee
Step 4: Receive Certificate of Incorporation
CIPC issues a CoR14.3 Certificate confirming your NPC is registered.
Tax Exemption for NPCs: Section 30 PBO Status
After incorporation, apply to SARS for Public Benefit Organisation (PBO) status under Section 30 of the Income Tax Act. This gives the NPC:
- •Exemption from income tax
- •Donors can claim Section 18A tax deductions
- •Exemption from capital gains tax in most cases
CIPC Annual Returns for NPCs
NPCs must still file annual returns with CIPC — the fee is R100 for NPCs with zero income.
They must also maintain:
- •Financial statements
- •Director registers
- •Member registers
Register Your NPC with Amashad
Amashad handles the complete NPC registration, including the MOI drafting, CIPC submission, and SARS PBO application. Request a quote today.