You can register your company online at the Companies and Intellectual Property Commission (CIPC) website or at Bizportal.gov.za, a CIPC-created platform that offers company registration and related services.
You can also register your business with a bank, such as Nedbank or First National Bank.
Another option for registering your company is to outsource the administration to companies that specialise in company registration and related services. Many of them offer packages that include company registration as well as related services such as SARS consulting, labour registrations, CIDB registration and upgrades, tax returns/compliance, or accounting services.
What exactly is the CIPC, and what does the law say about it?
In May 2011, the Companies and Intellectual Property Registration Office (CIPRO) was replaced by the Companies and Intellectual Property Commission (CIPC), which changed the way business owners had to register their companies. The Act prohibits the formation of new close corporations (CC), but those formed prior to May 1 may continue to operate as CCs.
Every business falls into one of several categories, each with its own set of documentation requirements. The Companies Act defines two types of companies: non-profit and profit, with additional types falling under these categories.
What kinds of businesses can register with the CIPC?
You can register your business as one of the following:
- Non-profit corporations: A corporation formed for the benefit of the public or another purpose related to one or more cultural or social activities, or communal or group interests.
- Profit companies: Any business or organisation whose primary goal is to make money, including retail stores, restaurants, insurance companies, and real estate companies.
- Personal liability companies: Company directors and past directors are jointly and severally liable for any debts and liabilities incurred during their terms of office. The word ‘incorporated’ concludes the company name.
- Public companies: A public company is one that has issued securities through an IPO and is traded on at least one stock exchange. It has over 50 shareholders and its shares are available to the general public.
- Close corporations: These are similar to private companies. Private companies now have fewer disclosure and transparency requirements, are no longer limited to 50 shareholders, and must have at least one director on their board. A private company’s name must end with the words ‘Proprietary Limited’ or ‘(Pty) Ltd.’
How long does it take to set up a business?
A name reservation takes between seven and 21 days, according to the Online PTY Registration. A company certificate can be registered within three to five days, depending on whether you submitted your documents on time and the registrar’s office’s workload.
How many Directors are permitted in a corporation?
At least one filmmaker.
Can I form a company despite being blacklisted?
Yes.
Can foreigners establish a business in South Africa?
Yes. To do so, you must provide a valid passport copy or RSA ID document, as well as a South African residential address.
Is it legal for me to register a company without a name?
Yes. According to the CIPC, a company may be registered with or without a company name under the Companies Act, 2008. A company that is registered without a reserved name will still receive a registration number, which will become the company’s name automatically.
According to CIPC, the company can transact under a trading (business) name or later apply to add a reserved name. In this case, the company must first reserve a name before applying for a name change.
What is the procedure for reserving a name?
The procedure: If your initial name reservation application is denied, you must apply for new names, according to the CIPC. You may apply for up to four different names during each application process.
The price is: Each application for a name reservation costs R50. A company registration can cost between R125 and R475 per year (R125 for a private company, R475 for a non-profit company registered without members).
Should I file taxes for my new small business?
Every new business must register with your local SARS office in order to obtain an income tax reference number. Within 60 days of beginning operations, you must register by completing an IT77 form, which is available at your local SARS office or on the SARS website.
Small businesses with annual turnovers of up to R1 million will be able to pay certain taxes (turnover tax, VAT, and employees’ tax) twice rather than once, making the process more efficient for qualifying small business owners.
Turnover tax is a simplified tax system designed to help small businesses comply with their tax obligations. Turnover tax is calculated by applying a tax rate to a microbusiness’s taxable turnover. Depending on other factors such as turnover, payroll amounts, whether you are involved in imports and exports, and so on, you may be required to register for additional taxes, duties, levies, and contributions such as VAT, PAYE (Pay-as-you-earn), and UIF contributions.
After registering my business, where can I apply for funding?
You can apply for various types of funding through the Industrial Development Corporation or the Department of Trade and Industry’s Government Investment Incentives, according to the South African Government. You can apply for private sector funding in addition to government funding.
