How Do I Register A Small Business

UPDATE: This article was originally published in May 2014; due to its popularity information technology'due south been updated with new information on 20 September 2021.

Regardless of whether you lot are a making profit or the size of your company, there are advantages to registering your business in South Africa. These include business concern proper noun protection, tax incentives, fiscal assistance and business organization compliance.

We respond all your other frequently asked questions (FAQs) well-nigh registering a new business organization:

Where do I annals my small concern?

1. Yous can register your company online on the Companies and Intellectual Property Committee (CIPC) website, or on the Bizportal.gov.za website, a platform created by the CIPC that offers company registration and related services.
2. Y'all tin as well annals your visitor via a bank, including Nedbank and Commencement National Bank.
3. [UPDATE] Another way to register your business is to outsource the admin to businesses that have the expertise to offer company registration services and related services. Many of them provide packaged services that include company registration and related services such as SARS consulting, labour registrations, CIDB registration, and upgrades, taxation returns/ compliance, or accounting services. Read more here

If you would similar to speak to a professional person to guide you through the process of registering your business concern, y'all can join Startwise. Startwise is an online consulting platform built exclusively for S African SME's to have access to experts in their fields to guide you on all aspects of starting your own business.

What is the CIPC and what does the law say?

​The Companies and Intellectual Property Registration Part (CIPRO) was replaced by the Companies and Intellectual Holding Commission (CIPC) in May 2011, together with the New Companies Act, the act changed the style business owners had to register their companies. The Act stipulates that no new close corporations (CC) can exist registered, but those registered prior to 1 May could go on to operate as CCs.

All companies autumn under specific categories with, each with specific requirements in terms of the documentation that is required. The Companies Act provides for 2 primary categories of companies – non-profit and profit companies, with other types falling nether these categories.

What types of companies can annals with the CIPC?

You can choose to register your visitor equally ane of the post-obit:

1. Not-profit companies: A visitor 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 annihilation from retail stores to restaurants to insurance companies to existent estate companies.

three. 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 1 that has issued securities through an initial public offer (IPO) and is traded on at least one stock exchange. It has more than 50 shareholders and its shares are offered to the public.

v. Private companies: These are like to what was previously known equally shut corporations. Some of the changes fabricated to private companies include fewer disclosure and transparency requirements, no longer being limited to 50 shareholders, and with a board that must comprise at to the lowest degree one director. The proper noun of a private visitor must end with the expression 'Proprietary Limited' or '(Pty) Ltd'.

How long does it take to annals a company?

According to the Online PTY Registration, a name reservation takes between seven to 21 days. A company certificate can be registered inside three to 5 days afterward, depending on whether y'all take submitted your documents on time, and the workload of the registrar's office.

How many Directors are allowed in a visitor?

At least ane managing director.

Tin I register a visitor if I have been blacklisted?

Yes.

Can foreigners register a company in S Africa?

Yes. In gild to practise this, y'all need to provide a valid passport copy or RSA ID document and have a residential address in South Africa.

Am I allowed to annals a visitor without a company proper name?

Yes. Co-ordinate to the CIPC, in terms of the Companies Human activity, 2008, a company may be registered with or without a company name. A company that is registered without a reserved name will yet go a registration number, this will automatically go the company'south name.

CIPC says the company can transact with a trading (business) proper noun or may apply to add together a reserved name at a later stage. In this instance, the company will need to first reserve a proper name and then apply for a name modify.

How does the name reservation piece of work?

The process: According to the CIPC, if your initial name reservation application is non approved, you will need to use for new names. During each awarding process you may utilise for upwardly to 4 names during each application process.
The cost: Each name reservation awarding costs R50. A company registration may vary betwixt R125 and R475 (R125 for a private company, R475 for a non-profit company registered without members).

Should I register my new modest business organisation for tax?

​For every new business concern established, you are required to annals with your local SARS role to obtain an income tax reference number. Registration must be washed inside 60 days after starting operations past completing an IT77 grade, available at your local SARS office or from the SARS website.

Small businesses with a turnover of up to R1 million per annum volition at present be able to pay certain taxes (turnover tax, VAT and employees' tax) twice instead of once a year, making the procedure more efficient for qualifying small business owners.

Turnover tax is a simplified tax system to make information technology easier for micro businesses to comply with their tax obligations. Turnover tax is worked out past applying a tax rate to the taxable turnover of a micro business. Depending on other factors such as turnover, payroll amounts, whether you are involved in imports and exports etc. you could also be liable to register for other taxes, duties, levies and contributions such as VAT,  PAYE (Pay-equally-you-earn) UIF contributions (unemployment insurance contributions).

Where tin can I employ for funding later registering my concern?

According to the Due south African Authorities, you lot tin apply for various types of funding which is bachelor through the Industrial Development Corporation or the Department of Trade and Industry's Government Investment Incentives. Besides regime funding, you can likewise apply for funding from the private sector.

• Total GUIDE TO Government FUNDING Available Hither
• See Too: Crowdfunding in S Africa

What support is available to me afterwards I accept registered my business?

The Modest Enterprise Development Agency (Seda) provides business development and support services for small enterprises. Seda will give y'all all the information you need to start a business, including how to write a business plan, and once you accept a business, to abound it.

• FIND OUT EVERYTHING YOU NEED TO START A BUSINESS IN S AFRICA HERE
• See ALSO: Everything You Demand To Know Nigh Enterprise and Supplier Evolution In Southward Africa

[UPDATE: 20 September 2021]

Other Services You lot Tin Utilize for on the CIPC  Portal

You tin also utilise for the following services on the Bizportal.gov.za portal: business organisation depository financial institution accounts, tax registration, B-BBEE certificates, Compensation Fund and UIF registration, Company name changes, address changes, and Annual Returns (Turnover based). For the Annual Returns (Turnover based) you lot can pay from R100. The rest of the in a higher place services are free.

Here are six legal documents you may demand to first your own business.

Should I register my company domain proper noun every bit well?

In 2018 , the .ZA Domain Proper name Authority (ZADNA), partnered with the Companies and Intellectual Property Committee (CIPC) to enable businesses to register their domain name and business name simultaneously.

Domain name registration should be part of your trademark protection process.

"It is highly critical for a business to secure its domain name as early as possible to prevent online brand identity theft. A domain name gives your business digital presence and accessibility moreover, it enables a business an online brand establishment," said Angel Selebano , Communications and Awareness Coordinator at .ZA Domain Name Authority (ZADNA).

The in a higher place information is sourced by the Online PTY Registration, CIPC, Due south African Government website, and Sars. Information technology was originally published in May 2014.

• Looking for a Professional that tin Help with Registering Your Business? Observe one on Serv

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Source: https://smesouthafrica.co.za/basics-of-registering-a-business/

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