How to register a company in South Africa

Anyone who has ever started a company knows that there is much more to it than simply getting a product and a catchy name and proceeding to make money. Before you can start doing anything productive, you will have to register your company as such. The process that goes into this, however, is not as simple as just sending in an application. The following is a basic step-by-step guide showing what needs to be done in order to successfully register a business in South Africa:

1.     Prepare and certify documentation

Before you are able to register your company, no matter what type you have chosen to pursue, you will need to consult an attorney who is legally allowed to submit formation documentation. All documentation must be certified and submitted either by an attorney or an attorney’s clerk on your behalf.

2.     Register and pay for the reservation of a name

In order to register a company name, you will have to submit a list of three to five preferred names to the CIPC. The list will then be checked against existing names, and once one is approved (the one ranked highest on your list, if available, will be assigned), it will be reserved for you for two months, subject to payment of all fees beforehand. During these two months you will need to have your business incorporated, or lose the name reservation.

3.     Lodge formation documentation for registration

This step can only take place once a name has been reserved, all documentation relevant to the particular type of business and holding has been submitted, and fees have been payed. The Registrar will then issue a registration number, certificate of incorporation, a certificate to commence business and various other forms which will be used to prove the validity of the business’s status.

4.     Open a bank account

In order to set up an official company bank account, you will need to submit certified copies of all of the above mentioned forms to the bank of your choice, potentially along with other documentation, such as a business plan, statement of purpose, etc., if you are applying for finance through the banking institution.

5.     Register with all other relevant offices

Before you can start hiring employees and trading as an official company, you will need to register your company at your local branch of SARS, so that you and your employees will be covered for the various types of tax involved in the running of your business. You will also need to register at the Department of Labour for Unemployment Insurance and compensation for occupational injuries and diseases.