0800 007 269 (Toll Free)
Get Compliant from Anywhere, Easy and Fast!
0800 007 269 (Toll Free)

Get Compliant from Anywhere, Easy and Fast!

0800 007 269 (Toll Free)
Get Compliant from Anywhere, Easy and Fast!

Company Registration in South Africa

Do you want to know more about Company Registration in South Africa?

In this article, we will discuss everything you need to know about Company Registration in South Africa as well as the process to Register a Company online, easy and fast.

 

Don't have time to read? You can also watch our informative video below:

Company Registration at CIPC

Step number one for any new business is to Register a Pty Company with CIPC.

A Pty Company in South Africa is also known as a Private Company or a Pty Limited company. It is currently the most preferred legal company format in South Africa if you want to make profit with your business, and is used 99% of the time.

The other business formats, such as Co-operatives (Co-op) and public companies, are very specialized.

The Pty business format works for anyone, from an entrepreneur running a side hustle with R5000 income per month, up to a big private corporate business with R1billion in turnover per month. 

What are the Benefits of Registering a Company in South Africa?

Here are six of the top advantages of registering your company in South Africa:

1. Credibility. Gain credibility and trust with your customers and other businesses. You look more professional when you operate under a registered business name and registration number. New clients, other Companies and Government often compare you to your competitors by looking at who is formally registered and who is not, especially when applying for Contract or Tenders.

2. Your New Company Name. If you have your business name that is officially registered and trademarked, no one else can use that business name.

3. Growth. If you have a registered company, there are shares allocated to the company that investors can buy to raise capital for your company.

4. Limited liability. A registered company offers you a safe legal structure where your business assets and risks are separated from your personal ones.

5. Funding. When you apply for a loan or funding, the bank or funding institutions will only look at your application if you have formal company registration documents.

6. Tax. In a formal business, you can write off business expenses and save on Taxes. If you trade under your own name, SARS makes it very difficult for you to claim back tax for business-related expenses.

What is the difference between a Director and a Shareholder?

A private company must appoint at least one director upon Company Registration at CIPC. There’s currently no limit to the maximum number of directors that a Private Company can have. 

Directors manage the company and are responsible for the day-to-day operations of the business. The Directors’ details also appear on the CIPC company registration documents.

Shareholders own the company and do not have to be involved with management of the company. It is common for the directors and shareholders to be the same people. In some cases another company, a trust, or an investor can also be the shareholder of a company.

Every company needs to initially make a number of shares available to the current and future shareholders. This is done at no additional cost during the company registration process at CIPC and is shown on the Memorandum of Incorporation (MOI) certificates of a company. The share allocation amounts can vary. For example, you can have 100 or 1000. In most cases, we recommend you start with 1000 authorised Shares for some extra flexibility.

The issuing of shares to shareholders needs to be done after your company registration is completed at CIPC.

Each shareholder needs to be provided with an official Share Certificate which stipulates the number of shares allocated to an individual, a company or a trust. The Share Certificate also serves as proof of ownership and is a legal document not provided by CIPC, but by a third party.

Why is a Tax Number at SARS important?

Another very important aspect of the company registration process is your corporate income tax number allocated by SARS.

By law, a private company is treated as a separate legal entity and must also register as a taxpayer with SARS. When your Pty company is registered, it will automatically be registered for income tax with SARS. Your income tax number will appear in the MOI document which CIPC can send to you after registration.

Make sure you request it, as CIPC does not automatically send this document as well. They should also send you a SARS notice of registration document which confirms your income tax registration number, as well as your tax obligation as a company.

How do I Register a Company in South Africa?

There are two main options to register a company in South Africa.

The first option is to do everything yourself through CIPC directly.

This is your cheapest option if you have time to spare. It will also be the best route to take if you understand the Companies Act of 2008. Then you should also understand how to correctly set up your company share location, your MOI, shareholder certificates and tax.

The second option is to use a company registration specialist like Company Partners.

We offer a fast, simple, and easy Company Registration Service and our experienced Business Specialists will ensure all your company registration admin is done perfectly based on what your business needs. 

This is the best option for you if you want to save time and energy to focus fully on your business. Our service allows you to receive your company documents ASAP and it is done admin-free, as we only need your ID number. This makes it possible for us to register your business online, from anywhere in South Africa.

Because we are so passionate about helping Entrepreneurs, we also include Free Business Growth Training and more.

In Summary

Well, there you have it, we hope you have learned everything you need to know about the Pty company registration process in South Africa. 

If you have more questions after reading this article, we have created a separate Video on the FAQs about Company Registration that we have identified through our years of experience in working with CIPC and many Entrepreneurs in South Africa. Simply Click Here to watch it now!

If you need assistance with your Company Registration, call us Toll-Free on 0800 007 269. Or simply signup for a Free Business Consultation with a Compliance Specialist HERE. 

consultation

Have more questions? Check our this article on the Frequently Asked Questions Entrepreneurs have on Company Registration in South Africa.

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