Start a Business in South Africa

Registering puts your company on the CIPC register and makes it a legal entity in its own right. You get a registration number, the CoR 14.3 certificate, and an income tax number. From there the company can open a bank account, sign contracts, and employ people in its own name instead of yours.

Keep the company’s money separate from your own from day one. Banks ask for your registration documents and ID to open the account. A dedicated account also makes bookkeeping and tax returns far less painful later.

The company’s income tax number is issued with registration. Two more registrations may follow: VAT, once turnover passes the registration threshold, and PAYE, as soon as the company pays a salary. Most new businesses need neither on day one.

A registered company owes CIPC and SARS a few things every year: an annual return, a beneficial ownership filing, and tax returns. They’re easy to forget because nothing prompts you, and CIPC charges penalties for late annual returns. This is the part first-time owners most often miss.

Some industries need more than the basics. Security companies must register with PSIRA before trading. Construction firms need CIDB registration for most public-sector work. Cleaning companies often need a Letter of Good Standing for tenders. If yours is one of these, the guides below go through it step by step.