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CaseLaw, Attorney
Category: South Africa Law
Satisfied Customers: 1587
Experience:  BCom; LLB; Masters in Law
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What is the total cost involved in purchasing shares in a

Customer Question

What is the total cost involved in purchasing shares in a private company from a shareholder/director who is selling the business to me. Is there any taxes on the transfer of the shares and if yes, approx. how much. I am not referring to the tax on capital gains the seller must pay, only as to the transfer of the shares to my name.
Submitted: 2 years ago.
Category: South Africa Law
Expert:  CaseLaw replied 2 years ago.

Hi there and thank you for your question,

There is no tax that is payable by you when purchasing shares in a privately held company.

The shares are purely an asset in the seller's name, and you're simply purchasing that asset.

When you SELL the shares however, you may find that you're liable for CGT on the increase in value of the shares, but that's a story for the future.

The only cost that you will need to pay is the purchase price of the shares to the current owner, and also possibly for a sale of shares agreement to be drawn up by a lawyer to cover you.

You may need to submit a CoR39 to CIPC, but that could only cost a few hundred rands.

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Good luck and best regards,


Please note: This answer does not create an attorney-client relationship. Please consult a local attorney in person for legal advice. This information is being provided so you can better discuss legal matters with your attorney.

Expert:  CaseLaw replied 2 years ago.

Hi there again,

I hope that you understood the above advice and that it was useful? Please leave positive feedback for me.

If you have a further question please ask it?