What is an NPC?
A Non-Profit Company (NPC) is a legal entity registered under the Companies Act 71 of 2008, designed for organisations whose primary objective is not profit but public benefit. NPCs replaced the old Section 21 companies.
NPCs are ideal for NGOs, faith-based organisations, charities, community development organisations, sports clubs, and educational bodies.
Who Should Register an NPC?
- NGOs and community organisations
- Churches and faith-based organisations
- Charities and welfare organisations
- Educational and training institutions
- Sports clubs and cultural associations
- Environmental and advocacy groups
NPC vs NPO — What's the Difference?
An NPC is registered with CIPC under the Companies Act and gives your organisation full legal entity status. An NPO (Non-Profit Organisation) is registered with the Department of Social Development and is required for certain government funding. COMPREGSA handles NPC registration — we can also refer you for NPO registration.
Benefits of Registering an NPC
- Full legal entity — can own property, sign contracts, sue and be sued
- Required to open an NGO/NPC bank account
- Qualify for government grants and donor funding
- Apply for tax exemption with SARS (Section 18A)
- Credibility with donors, government, and corporates
- Required for certain tenders and contracts