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What is a Ring Fenced Company?

Updated: Oct 2, 2023

Companies with the RF moniker

Under the new Act, A (Pty) Ltd no longer needs to indicate their business nature in their MOI, as was required in the past. Consequently, all companies are free to conduct business in any industry without limitations.

However, should a company wish to restrict its business nature or powers, it must amend its MOI to reflect such restrictions and include the letters "RF" after its (Pty) Ltd designation.

This serves as a cautionary notice to anyone doing business with the company that its MOI contains restrictive conditions that may have significant implications.

If you wish to explore this topic in more detail, please contact us.

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