Private Company vs. Sole Proprietor in South Africa In South Africa, business structures are essential for defining the legal, operational, and financial framework of a business. Two common forms are private companies and sole proprietorships. Each has unique characteristics, advantages, and disadvantages, making them suitable for different types of entrepreneurs and business activities. Understanding these distinctions is crucial for anyone looking to start a business in South Africa. Private Company (Pty Ltd) A private company, often referred to as a “Pty Ltd,” is a legal entity separate from its owners, providing limited liability to its shareholders. This means that the personal assets of the shareholders are protected in case the…