Quick Answer Pty Ltd vs Sole Proprietor: Which Is Better in South Africa? A sole proprietor is free and instant but you are personally liable for business debts and pay personal tax up to 45%. A Pty Ltd costs R175 to register, protects your personal assets, pays a flat 27% company tax (less if it qualifies as an SBC), and is required for most tenders and funding. What this means in plain language The real question is risk and ambition, not cost. If the business can owe people money, sign leases or get sued, the Pty Ltd’s limited liability is worth the admin. If you are testing a side hustle,…