How to register a company is a topic that comes up all the time in the South African business communities that we frequent.

A company is a great way of protecting your personal assets and allows you to take advantage of South Africa’s investment incentives.

Deciding the right legal structure when registering a company in South Africa might sound complicated, but with the South African government letting the traditional CC (Closed Corporation) go and not allowing new registrations, the most suitable for-profit entity would be a Pty Ltd. There are other legal entities to consider if you run special organisations including non-profit, but most standard businesses are Pty Ltd.

CIPC Registration

As per the Companies Act of 2008, private companies may be registered with or without a business name while not-for-profit companies are legally required to have one. When a company is registered without a registered business name, its corporation registration number automatically becomes the company name with “South Africa” as the suffix. This is one way to register your business quickly. You can request a name reservation in the beginning by supplying a few options for the CIPC (Companies & Intellectual Property Commission) to select from, or change the name later via an official process.

When it comes to naming a business, people think of it as naming their child. You want the perfect, unique name that fits your company perfectly. In this case, though, you also want a name that is legally safe to use and one that you can actually obtain the rights to. As companies are registered with CIPC they tend only to register a name if it hasn’t been previously used by someone else or belongs to them in any way – even if not currently being used. If you do find yourself wanting to use a previously used name, there may be ways of working around this but this will depend heavily on the specific details of each individual case and further advice should be sought.

If your initial name reservation application is not approved, you will need to apply for new names. You may apply for between 1 and 4 names during each application process. Each name reservation application costs R50 and since it is regarded as a filing fee and not an administrative fee, it is not refundable.

CIPC Company Name Search

A simple googling of potential business names and checking for domain names is a good idea before you commit to sending possible names with your application. You can also search through the official company database using GovChain doing a CIPC company name search.

Your name reservation application is only registered or reserved upon written confirmation from CIPC in the form of a CoR9.4.  The name reservation is valid for 6 months during which period you must have used it on a company or co-operative registration or a change to a company or close corporation name.

How much does registering a company cost?

It can be as little as R175 but prepare yourself for a bit more as there are always extras (like name reservation requests etc).

Do we have to register for VAT?

No, initially you don’t need to register for VAT and only once your annual revenue exceeds R1m should you start considering registration unless there is a different reason (eg buying VAT-registered products and not having the ability to discount purchase VAT against selling VAT). You can voluntarily register for VAT if your annual turnover exceeds R50,000, but consider the additional costs and administration around submitting returns carefully. Read more about VAT registration here.

What information do I need to prepare to register a company?

• Expect a full FICA process for directors listed in the company, so ID (including marriage certificates if required and spouse ID number), address, phone etc. BizPortal currently only caters for South African ID holders. Login on https://eservices.cipc.co.za if you do not have a South African ID.
• Up to 4 potential business names to submit
• A debit/credit card with 3D-secure capability when paying online

To get started, visit https://www.bizportal.gov.za/ and follow the steps. You can even register your company bank account via them.

Once you have completed your company registration, it’s time to list your business in our directory!