Welcome to my today’s article post on how you can register your business in South Africa online — without relying on any third party.
Regardless of whether you are a making profit or the size of your company, there are advantages to registering your business in South Africa. These include business name protection, tax incentives, financial assistance and business compliance.
Requirements To Register A Business In South Africa
The documents you will need to complete the registration are:
- Your name reservation confirmation letter;
- Your signed COR 15.1A form;
- A certified copy of your South African ID and/or;
- Completed Power of Attorney form – should you be acting as a representative or proxy.
Where to Register Your Small Business
- You can register your company online on the Companies and Intellectual Property Commission (CIPC) website.
- You can also register your company via a bank, including Nedbank and First National Bank.
What is the CIPC and what does the law say?
The Companies and Intellectual Property Registration Office (CIPRO) was replaced by the Companies and Intellectual Property Commission (CIPC) in May 2011, together with the New Companies Act, the act changed the way business owners had to register their companies. The Act stipulates that no new close corporations (CC) can be registered, but those registered prior to 1 May could continue to operate as CCs.
All companies fall under specific categories with, each with specific requirements in terms of the documentation that is required. The Companies Act provides for two main categories of companies – non-profit and profit companies, with other types falling under these categories.
What types of companies can register with the CIPC?
You can choose to register your company as one of the following:
1. Non-profit companies: A company incorporated for public benefit or other object relating to one or more cultural or social activities, or communal or group interests.
2. Profit companies: A business/organisation whose primary goal is making money, this includes anything from retail stores to restaurants to insurance companies to real estate companies.
3. Personal liability companies: Company directors and past directors are jointly liable for any debts and liabilities arising during their periods in office. The company name ends with the word ‘incorporated’.
4. Public companies: A public company is one that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange. It has more than 50 shareholders and its shares are offered to the public.
5. Private companies: These are similar to what was previously known as close corporations. Some of the changes made to private companies include fewer disclosure and transparency requirements, no longer being limited to 50 shareholders, and with a board that must comprise at least one director. The name of a private company must end with the expression ‘Proprietary Limited’ or ‘(Pty) Ltd’.
How long does it take to refister a company?
According to the Online PTY Registration, a name reservation takes between seven to 21 days. A company certificate can be registered within three to five days afterward, depending on whether you have submitted your documents on time, and the workload of the registrar’s office.
How many Directors are allowed in a company?
In registering for your business in South Africa, you will be in need of at least one director — to complete the registration.
Can Foreigners Register A Company In South Africa?
Yes, foreigners are allowed to register for their businesses in South Africa legally.
How much does it cost to register a business in South Africa?
A company registration may vary between R125 and R475 (R125 for a private company, R475 for a non-profit company registered without members). There are five types of companies that you can register. If you wish to run a franchise business, you would register a private company.
These are the simple steps to follow and register your business successfully online in South Africa.