When to Register Your Business in South Africa (And Why it Matters)

Elvorne
Elvorne
3 min read
Sep 22, 2025
When to Register Your Business in South Africa (And Why it Matters)

When should you actually register your business?

Every year in South Africa, the gap between informal and formal business grows sharper: In 2025 alone, Gauteng shut down over 15,000 informal businesses over compliance failures. No registration. No paperwork. No chance to appeal.

On the other end of the spectrum? SA tech exports like SweepSouth were registered and structured properly from day one, which allowed them to attract funding and scale to become a household name.

Here’s what you need to know about when to register your business – and why it’s crucial for success.

When to Register Your Business

You can technically run a side hustle or proof-of-concept business as a sole proprietor in South Africa without registering.

But that comes with strings attached: Zero legal protection, limited credibility, you need to pay tax in your own name (SARS won't let you get away with not filing), and doors closed to most funding and formal partnerships.

6 Real-World Signals That It’s Time to Register

  1. You’re sending out quotes and invoices regularly.
  2. You’re applying for funding, grants or tenders.
  3. You want a business bank account, not just your Capitec savings.
  4. You’ve hired (or are about to hire) someone to help.
  5. You want people to trust your business — even if they’ve never met you.
  6. Your turnover exceeds R1 million/year — in this case, you’re legally required to register for VAT, which means you need a registered business entity.

If that sounds like you, you don’t just need to register; you’re already behind – see how to register right now.

Why Registering Your Business is Vital

Registering your business isn’t just a box to tick; it’s a strategic move that transforms how people see you (and how you see yourself).

Your company number comes with:

  1. Legitimacy: You stop looking like a side gig and start showing up like a serious player.
  2. Leverage: You gain access to opportunities only registered businesses qualify for — think tenders, corporate contracts and government funding.
  3. Legal separation: Your personal assets are no longer on the line when things go wrong.
  4. Professional tools: Want to register for VAT, sign a lease or open a business account? You’ll need that registration certificate.

But most importantly? It changes your mindset.

You’re not just “trying something” anymore. You’re building a real business, with a structure, a strategy and a future.

What Documents Do You Need to Register a Company?

You’ll be surprised how little you need to get started. Thanks to Govchain, you don’t need stacks of paperwork or a lawyer. All you need is:

  • A certified copy of your South African ID
  • A company name (optional, Govchain will help you reserve one)
  • A few minutes to complete the online application

Govchain takes care of the rest: Name reservation, CIPC registration, tax number, B-BBEE affidavit, share certificates — it’s all delivered to your inbox in 7 days.

Head to our SA company registration page now.

How to Register Your Company (The Easy Way)

Registering doesn’t need to be confusing. Govchain makes it fast and easy to register online. Here’s how it works:

  1. Complete your online application: Just a few minutes, no complicated forms.
  2. Pay online or via ATM deposit: Safe, secure payment options.
  3. Upload a certified ID copy: It’s the only paperwork you’ll need.
  4. Get your certificates within a week: Everything arrives in your inbox: COR14.3, tax number, B-BBEE affidavit and more.

All this is bundled in a single once-off fee of R950 for new businesses, including your CIPC filing fees.

Register your business now.

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