3.4.1. Trading Trusts

A trading trust is a form of unincorporated business organisation created by a deed under which property is held and managed by trustees for the benefit and profit of beneficiaries designated in the deed. While such a trust can at present provide certain tax advantages while still preserving the limited liability of the trustees, the Government has announced that legislation will be introduced which will result in trading trusts being taxed on the same basis as companies. Trading trusts are not widely used in South Africa today but may be appropriate for certain types of businesses - for example, property development enterprises.

3.4.2. Co-operatives

Co-operative societies or companies registered under the Co-operative Societies Act are used extensively in agriculture, and for a few other enterprises. These bodies confer limited liability and carry on business for the benefit of their members. A large portion of their business is directly with their members - for example, the provision of farming supplies and the centralised distribution of farm produce.

For further information please contact: 

Werksmans Attorneys 

Werksmans Chambers, 22 Girton Road, Parktown, Johannesburg 2193 
P.O. Box 927, Johannesburg 2000 South Africa

Enquiries:        Mr Charles Butler
Telephone         27 (011) 488-0000
Telefax           27 (011) 484-3100/3200
E-Mail Address    cbutler@werksmans.co.za