Quick question: Is your business registered? It seems like a strange question, but we receive plenty of enquiries for funding from entrepreneurs who have not registered their businesses.

Before we get into the how, let’s look at the why. 

Why should I register my company? 

Here are a few advantages to registering your business in South Africa:

• The company receives official CIPC certification
• Business name protection
• Gain credibility and trust
• Protect your intellectual property
• Tax Incentives
• Become eligible for governmental assistance

What types of companies can register? 

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’.

Where do I register my company?  

1. You can register your company online on the Companies and Intellectual Property Commission (CIPC) website.

2. You can also register your company via Nedbank and First National Bank

How long does it take to register a company?

A name reservation takes between seven to 21 days. A company certificate can be registered within three to five days afterwards, depending on whether you have submitted your documents on time and the workload of the registrar’s office.

Can I register a company if I have been blacklisted?

Yes.

Can foreigners register a company in South Africa?

Yes. You will need to provide a valid passport copy or RSA ID document and have a residential address in South Africa.

Am I allowed to register a company without a company name?

Yes. According to the CIPC, in terms of the Companies Act, 2008, a company may be registered with or without a company name. A company that is registered without a reserved name will still get a registration number, this will automatically become the company’s name.

Should I register my company for tax?

Yes. Every new business established is required to register with your local SARS office to obtain an income tax reference number. Registration must be done within 60 days after starting operations by completing an IT77 form, available at your local SARS office or from the SARS website.

How much does it cost?

The registration cost of a private company is R125

If you want the company to have a name, then the minimum cost is R175. That is the CIPC fee of R50 for reserving the name and R125 for registration of a company. If you don’t register a name, you’ll end up with a company called something like K2020/001234/07

Each name reservation application costs R50

The process of registering your business is really simple and advantageous – don’t delay, begin this process and let us look forward to funding your purchase orders.