What Is Required to Register a Company in South Africa

A simple bright idea could blossom into a pioneering venture that makes all the right waves. And operating a small business in South Africa without registering it is legal. But any ambitious hustler aiming to level-up needs to consider what is required to register a company in order to set their business up for success.

From being able to protect your name and your intellectual property – to being eligible for certain kinds of financial assistance and tax incentives, there are several benefits to registering your company. That’s why we’ve put together a detailed guide on what is required to register a company in South Africa.

This includes all the important documents you need as well as the lowdown on the Companies and Intellectual Property Commission (CIPC) and how it works. Let’s get started.

Why You Should Register Your Company: Going Legit Opens Big Doors

Knowing what is needed to register a company is one of the most important aspects of building a successful business. In addition to figuring out your audience and refining your niche and unique offering, making your company legit is one of the few steps you have to complete to make sure your foundation is solid and sturdy to sustain your growth.

One of the most important processes on that journey is registering your company. Imagine you’ve opened your own awesome food truck in your kasi but now you need funds to buy new equipment or even hire more staff? Or your stylish vintage thrift store has outgrown your stall at the shopping centre and needs more space to thrive?

Not only will legitimising your business give you a better shot at success, it’s key to you being able to scale your operations and reach your true potential. It also opens you up to a range of other benefits like:

Legal Protections:

Registering a company in South Africa makes it a separate legal entity. This allows you to protect your personal assets in the event of challenges. Although the goal is to make it, being a business owner is tough and you need to be realistic about managing some of the obstacles you’ll face along your start-up journey.

Protecting Your Intellectual Property:

Registering your company can also allow you to protect your ideas by safeguarding your intellectual property rights including any original concepts, products or services you might create. This will go a long way in ensuring that you stay ahead of the game and are able to secure your place in the market.

Access to Funding:

Being a registered company makes you more likely to secure loans and investments because you’re more credible. And we all know how that one timely investment can be the key to unlocking your company’s fullest potential. There are several avenues available for small businesses like iKhokha Cash Advance which gives you instant access to funding of up to R1 million without any paperwork and long approval processes. And the best part? You’ll be able to pay back the loan based on your card sales.

Tax Benefits:

Registered companies also have access to various tax incentives and deductions offered by the South African government, which could come in handy when you’re trying to lower costs and keep to your budget.

Building Your Brand’s Credibility:

A registered company is often seen as more reliable and trustworthy in the eyes of customers, suppliers and partners. This will be a great asset as your business grows because it’ll help attract more clients and build more brand loyalty.

Securing Business Contracts:

Registering your company gives you more opportunities to secure partnerships and collaborate with other successful, credible businesses that could help your growth. Imagine you’re a growing fashion brand and you’re trying to secure a distribution deal for your clothes to be sold at a major retailer like Woolworths.

Having a registered company with all the correct certificates could unlock a great opportunity for you to become a part of Woolworths’ Enterprise Development programme, which invested over R4 billion through partnerships with SMEs last year.

It’s All About the Paper: What You Need to Get Started

Let’s be honest, paperwork is sometimes the least glamourous part of being a business owner. Whether you’re certifying documents or you’re trying to figure out how to use the CIPC website, what is required to register a company in South Africa can be an involved process. But the payoff is opening up your business to more resources and wouldn’t that be the best possible outcome for your start-up?

There are several documents needed to register a company and the most important one is the Company Registration form with the CIPC. The CIPC records all the information about every private company in Mzansi and you’ll need to complete a Notice of Incorporation, Memorandum of Incorporation plus other supporting documents to be a fully registered company.

A Notice of Incorporation includes:

• The name of your company.
• The type of company you have.
• When it was started/incorporated.
• Your financial statements.
• A working address.
• How many people are directors in the company.
• The reserved name of your business and reservation number.
• A list of four names to be checked by the Commission.

The Memorandum of Incorporation will have:

• The details of the founding members of the company.
• How many directors or alternate directors the business has.
• How much share capital the business has.

You’ll also need to add other supporting documents like your certified ID or Passport copy as well as a valid Proof of Address. The CIPC might ask you to fill out other separate documents but that depends on the kind of company you’re running and the requirements you need to be compliant in different industries.

Another important thing to note is that you WILL need to register your business with the South African Revenue Service (SARS). New companies are given 60 business days to register and receive an income tax reference number. Even if your business falls below the threshold that companies need to pay in tax per year, you still need to be registered.

You can register to be a taxpayer with SARS by completing an IT77 form at the SARS branch nearest to you. And remember that if you have employees or are importing/exporting goods you could also be liable for to pay other taxes, duties, levies and contributions such as: Value Added Tax (VAT); Pay As You Earn (PAYE); Customs; Excise duties and levies; a Skills Development Levy (SDL) and the Unemployment Insurance Fund (UIF).

How to Register a Company: Step-by-Step

Despite having an intense process, the CIPC has developed an online registration portal that takes you on a step-by-step journey on how to register your company.

On the site, you’ll go through:

• Creating a customer code and adding credits to your code to use the website.
• Then you’ll fill in your Director’s details;
• The company’s details;
• Applying for a company name or using an already reserved name and uploading all the supporting documents that are required for each section.

Although the CIPC’s website is quite straightforward, there are other online options like BizPortal that have easy to follow guides on registering your company. And once you’re done filling in your information and uploading your supporting documents, all you have to do is click ‘Lodge Company’ and you’re done!

You should receive confirmation about the status of your application from the CIPC and once you’ve been vetted there is a final set of forms to complete and upload and you’ll be good to go!

Registering Your Company: the Do’s & Don’ts

Because the company registration process is extensive and requires a significant amount of focus, doing it right the first time is key to achieving the purpose of going legit with your business.

What You Should Do:

• Choose what type of company you want to operate as: Do your research and get an understanding of the different types of company structures available and what would suit your business needs best.
• Create a CIPC account: Registering an account on the CIPC website is the crucial first step to registering your business.
• Make sure all your required documents are correct and in order: Do you have certified copies of your ID/Passport? The correct details for your company directors? Have you reserved your business name?
• Complete your other regulatory requirements: Register with SARS to receive a tax reference number and comply with other relevant regulations and labour laws.
• Get expert advice: Make sure you seek guidance from legal or accounting professionals, especially if you’ve never been through the process or have complex business structures.

What You Should Avoid:

• Don’t gloss over the CIPC's requirements: Make sure you carefully read through the CIPC's website and guidelines for registration so that you understand how to meet all the requirements.
• Don't submit an incomplete form: All your required documents and information need to be included in your application to avoid delays or rejections.
• Don't underestimate the amount of effort you have to put into the process: While the online process has gotten fairly streamlined, you still need to be on the ball and pay attention to detail.
• Once you start, don't delay the process: Not completing your registration in the required timeframe could open you up to being fined hefty penalties and other legal complications.
• Don't forget your SARS registration: Registering your business with SARS is a requirement by law and it’s absolutely integral to the registration process.

Get Started Now

And there it is, a comprehensive guide on what is required to register a company in South Africa. Although registering your company can seem like a major step, it’s the smartest choice if you’re an entrepreneur looking to create a solid brand that has the potential to grow and be successful.

And if you’re looking for more tips on building a successful start-up, check out our blog and learn how to grow your hustle on the go.