C-plane substrates with off-orientation to <1120 > may stabilize the grown polytype, but the stacking fault density (SFD) increases from zero in the on-axis sample to 4500 cm-1 (7.7° off). The SF form preferentially at the seed-crystal-interface by a kinetically induced rearrangement of surface ad-atoms on m-facets. Most SF start in bundles with an average distance of 100 .m, which are subdivided in smaller bundles with 8 .m distance. They start preferentially from the upper corner of the vertical non-polar plane of bunched steps, which may be composed of small pyramids with m-facet surfaces. The dislocation density could decrease with increasing SFD by a pinning mechanism.