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How to Start a Construction Company in South Africa

Here's everything you need to register your Construction Company, stay compliant, and hit the ground running.

Already convinced?Register your company
How to Start a Construction Company in South Africa

Why Start a Construction Company?

South Africa's growing need for housing, infrastructure, and development makes construction a high-demand industry. Starting a construction company can be a profitable and scalable business with opportunities in both private and government sectors. With the right compliance in place, you can take on larger contracts and build a trusted brand in your area.

🪜 Step-by-Step: How to Start Your Construction Company

Follow these steps to launch your Construction Company successfully.

1

Register Your Company

Registering your business makes it official and gives you the documents you need to:

  • Open a business bank account
  • Hire employees
  • Sign contracts
  • Apply for tenders and government work

It’s the first step to running your company legally.

Cost:R880 (once-off)
required
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2

Get a Letter of Good Standing

Register with COIDA to protect your employees if they get injured or sick on the job. Once you're registered and up to date, you’ll get a Letter of Good Standing—often needed for tenders.

Cost:R1750
required
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3

Get a Tax Clearance Certificate

A Tax Clearance Certificate shows you're in good standing with SARS. It’s often needed when applying for tenders, funding, or doing business across borders.

Cost:R450 (yearly)
recommended
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4

Get a B-BBEE Affidavit

Broad-Based Black Economic Empowerment (B-BBEE) is a government program that supports economic transformation. If your company earns less than R10 million a year, you’ll likely qualify as an Exempt Micro Enterprise (EME), which means you only need a simple B-BBEE affidavit.

Cost:Free (if turnover < R10m)
optional
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5

Register with the CIDB

The Construction Industry Development Board (CIDB) registration is mandatory for companies seeking to:

  • Work on government projects
  • Bid on tenders

CIDB registration enhances your credibility and competitiveness in the industry.

Cost:R1750
recommended
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6

Register with the NHBRC

Registering with the NHBRC isn’t required, but it can help. It shows you’re committed to quality and safety, and gives you access to support if there are disputes with clients.

Cost:From R585/month
optional
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7

Register with the CSD

The Central Supplier Database (CSD) is where businesses register to supply goods or services to the government. Signing up makes it easier for you to be seen and considered for government tenders.

Cost:R500 (once-off)
recommended
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Frequently Asked Questions

Find answers to the most common questions about starting a Construction Company.

Every great company starts with a first step.

We’ll help you register, stay compliant, and get your business moving—without the stress.