A Closed Corporation business is controlled by a few people who own all the voting stock and interest in the company. A family corporation is one common example of a Closed Corporation, although partnerships in which two or three business partners have complete control of the company would also qualify as a Closed Corporation. Many small businesses choose to operate with this model.
In order to legally operate a Closed Corporation company in South Africa by a foreigner, the relevant business visa will need to be obtained before this company can be established. The decision to make a company a Closed Corporation is dependant on the applicant.