How to Register a Small Company in South Africa

There are five types of businesses that you can register. If you want to operate a franchise, you need to register a private business. If you want to register a church, you need to register a non-profit corporation. A private school can be registered as a private or non-profit business, depending on its purposes. An association of professionals such as lawyers, doctors, civil engineers, etc. can be registered as a personal liability company. For personal liability companies, it is recommended to contact the competent regulatory or registration authority of this profession to confirm the type of company registration required To complete the company registration process, you will receive the following supporting documents: You can register a company as a non-profit company or for-profit company with the Companies and Property Commission intellectual (CPIC). A company is a legal entity that has the ability and authority to act on its own. The law sees a company under the same light as a natural person.

Processing times for many things seem to be much slower than in most other countries, meaning it can take up to 2 months before a commercial presence in South Africa is fully registered. This may mitigate the fact that all types of businesses can go into operation at any time – as long as they register within 21 days. For foreigners who want to do business in South Africa, there are a number of types of businesses, including branches and subsidiaries. Representative offices or outsourced non-revenue-generating operations are not part of a formal process and therefore effectively fall under the same process as a branch, but with fewer tax obligations. Foreign investors usually use the private version of a company or branch. Foreign individuals sometimes take advantage of the narrow society, but the use is limited because exchange control regulations are applied more strictly to these companies. You can choose to register your business as one of the following: For the purposes of the Companies Act, 2008, a for-profit corporation (c.B a private corporation) may be registered with or without a corporation name, while a not-for-profit corporation must have a name. If a company is registered without a reserved name, its registration number automatically becomes the name of the company with (South Africa) as the suffix. This is the fastest way to register a business. If you want to register your small business or start-up in South Africa, find a step-by-step guide on how to follow the process so you can start trading. For more information, see the SARS Small Business Tax Guide here.

Businesses that do business with government and the formal sector or want access to certain types of government support generally need to be registered with CPIC. For these companies, there may also be tax advantages for registration, as registered companies have a lower tax rate than individuals. Once you are registered as a company with the CPTC, it comes with specific responsibilities, whether the company acts or not. For example, you will need to file an annual tax return and pay an annual fee to keep your name and business rights. However, if you plan to operate under a name other than the legal name of your company, you will also need to register your business name. As a small business owner, you`ve focused on many moving parts, and the admin is often the one who takes a back seat. Fortunately, some businesses are busy managing business registration, providing support to new business owners, and simplifying the application process and reducing frustration. Yes. Under the CPTC, a company can be registered under the Companies Act 2008 with or without a company name. A registered business without a reserved name will continue to receive a registration number, which automatically becomes the name of the business.

VAT is a simplified tax system designed to make it easier for micro-enterprises to meet their tax obligations. VAT is calculated by applying a tax rate to the taxable turnover of a micro-enterprise. Depending on other factors such as turnover, payroll, if you are involved in imports and exports, etc., you may also be required for other taxes, duties, levies and contributions such as VAT, paye-as-you-earn) UIF (unemployment insurance contributions). Note: The transfer of the reserved name will not result in an extension of the validity period of the reserved name (the initial validity period only applies to another customer code) or a change of company name. This can be done online through the Companies and Intellectual Property Commission (CIPC) and requires you to create a client account and deposit ZAR 400 into the CIPC bank account, then complete and submit several forms and a copy of the company`s incorporation documents (charter of incorporation, etc.). Other documents include: a certified copy of the applicant, a certified copy of the identity card or passport of all founders, directors and representatives, and a power of attorney (if applicable). If you are looking for help to register your South African business, you should turn to business registration services such as: Many start-up entrepreneurs start and start trading without registering their business. While this is perfectly legal, there will be a time when you`ll need a more formalized business if you want to attract big customers and build on your startup success. Private and public companies are companies registered under South African law.

A private company is the most common type of business for foreign investors. The company must be registered with the South African Companies Register through the Companies and Intellectual Property Commission (CIPC) within 21 days of the company being incorporated. A company is constituted by the filing of a memorandum of incorporation (CoR 14.1) and a memorandum of incorporation (CoR 15.1 A-E) and, where appropriate, other supporting documents depending on the company. These forms can be downloaded from the CPIC website. With the exception of specialist companies such as liquor stores and arms dealers, businesses no longer need a licence to trade in South Africa. However, they are required to register with the Conseil régional des services (CRR) in the region where they operate. You can apply between one and four names during each application process. Name registration can vary for a private company and a nonprofit that is registered without members, so be careful not to waste your money on multiple application submissions.

We answer all your other frequently asked questions (FAQs) about registering a new company: 4. Public companies: A public company is a company that has issued securities as part of an initial public offering (IPO) and is traded on at least one exchange. It has more than 50 shareholders and its shares are offered to the public. Depending on the type of business, registration can cost you between R125 and R475. You can register your business within 24 hours if you don`t book a name first. Although you cannot be registered with the CPTC, you must still be registered with the South African Tax Authority and will still be taxable if your turnover exceeds the prescribed threshold. Small businesses with a turnover of up to R1 million per year can now pay certain taxes (sales tax, VAT and employee tax) twice instead of once a year, making the process more efficient for qualified small business owners. Now that you know everything there is to know about how to register a business, you`re good to go. Start your business when it`s a success, when it starts to grow, or even before you start, register your business and legitimize your startup.

In South Africa, all companies here are registered with the Companies and Intellectual Property Commission (CIPC). A private company is a separate legal entity from you, the owner of the business. This means you can start a private business yourself, and if things don`t work, you don`t run the risk of your assets being seized by a court sheriff. If your business operates beyond the boundaries of a representative office, para. B example, if you want a more formal and formal presence, the status of a legal entity and the ability to make a profit, a “full” registration of the branch is required. The branch may carry on normal business activities and enter into agreements, but the principal company is responsible for all debts and liabilities of the branch. .