How to register a company in South Africa: Company registration in South Africa
How to register a company in South Africa
Building small businesses that contribute to the economy and create jobs is one of South Africa’s biggest development opportunities. Small enterprises employ between 50 and 60 percent of South Africa’s workforce and are increasingly becoming an engine of economic growth. It is estimated that of the 2.6 million micro-small and medium enterprises, only 37% are considered formal and this is why it is important to demystify myths associated with Company Registration in South Africa.
Is the process hard or costly?
Not at all, in fact, registering a company in South Africa is one of the easiest things to do and it can be done online that is on the Companies and Intellectual Property Commission (CIPC website). And the cost is as little as R125.
How does the CIPS Online process work?
Well, it is easy, you simply need to create an account on the CIPS e-services website. On that very same page simply click the customer registration link before moving to the next page where you will enter your national Identity number before being prompted to enter the required personal contact information. And yes before you transact you need to load or deposit funds into your CIPS account so that you proceed with the name search and registration process. Having followed all processes instructed at this stage you will receive an email with a COR 15.1A document which will need to be signed by the incorporator/direct
Do I necessarily need to have a name there and there?
Not necessarily, a company may be registered with or without a company name. When a company is registered without a name, its registration number automatically becomes the company name. Such a company may transact with a trading business name or may apply to add a reserved name at a later stage.
For those who may have ideal name suggestions, it is recommended to have between 1 and 4 proposed names for the company during the application process which cost only R 50. Upon Submitting the names, one will receive a tracking number for the name reservation as well as an email confirming the name reserved, this document is referred to as COR9.4.
What Options or Company types are there in South Africa?
Knowing the business entity is crucial at this stage hence it is important to know the type of entity you want. Companies that can be registered in South Africa can be Private (Pty Ltd) and Public Companies (Ltd), Personal Liability Companies (Inc.), and Non-Profit Organizations (NPO). Close Corporations are no longer registered in South Africa.
How much should I budget to register a company?
Company registration is R 125 for both private companies and non-profit companies registered without members.
What are the requirements needed to register a company?
A private company must have at least one (1) director and a non-profit company must have a minimum of three (3) directors. It is important to note that a successful company registration transaction automatically comes with a tax registration number.
After this add the following supporting documents
- Your name reservation confirmation letter;
- Your signed COR 15.1A form;
- A certified copy of your South African National Identify Number and/or;
- Completed Power of Attorney form
- Scan these documents and send them to [email protected] with the tracking number as listed on the COR15.1A in your subject line. Having done that and received your documents within 1-5 working days then you can proceed with other company-related activities such as the website tax form as your company will now be a registered legal entity.
How long does it take to register a company in South Africa
Any period between 1 to 5 days and in some instances 5 weeks depending upon the type of company and your ability to provide all necessary information to the CIPS portal.
THE END.
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How to register a company in South Africa
