Interested in Companies, Trusts, or Other Partnerships?
Choosing the right business structure is one of the most important decisions for any entrepreneur. The structure you select affects your tax obligations, asset protection, legal liability, eligibility for deductions, access to government incentives, long-term growth strategy, and even how much of your income you can legally retain.
Whether you’re considering a Company, Trust, Partnership, or Sole Trader, the right setup can significantly reduce your tax burden and provide stronger protection for both your business and personal assets.
Which Structure Is Right for You?
1. Other Partnership (General Partnership with non-family)
A partnership structure where two or more unrelated individuals run a business together.
Partners share profits, losses, legal liability, and tax reporting obligations.
Simple to set up, but each partner is personally liable for business debts.
👉 Best for small ventures with clear agreements and trust between partners.
2. Company (Pty Ltd)
A separate legal entity from its owners (shareholders).
Provides strong asset protection, limited liability, and access to lower company tax rates.
Suitable for businesses expecting growth, hiring employees, or seeking investment.
👉 Ideal for scaling, reducing personal risk, and reinvesting profits.
3. Trust (Discretionary or Unit Trust)
A structure where a trustee manages income and assets for beneficiaries.
Offers flexible income distribution, potential tax advantages, and asset protection.
However, setup and compliance requirements are more complex.
👉 Best for long-term asset protection, family planning, and advanced tax strategies.
