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Within the South African economy, SMME operations are considered to be the most important sector that will drive employment and economic growth. Under Income Tax legislation in South Africa, businesses that meet certain criteria qualify for certain income tax concessions. It is notable that there is a direct correlation between SMME’s and these qualifying conditions. Given this and several other considerations, it is our experience that the preferred type of business entity for new company registrations South Africa appears to be a private company.