Do you have questions about Company Registration in South Africa?
In this article, we will answer the Frequently Asked Questions Entrepreneurs have on Company Registration in South Africa.
Don't have time to read? You can also watch the FAQ Videos below:
Here follows Questions and Answers to the most popular FAQ’s South African Entrepreneurs have about Registering a Company in South Africa. Simply scroll down to the questions that are relevant to you.
Can I register a Company in SA if I'm a Foreigner?
Yes, you can still register a business. If Company Partners is doing the registration for you, you will use our passport service and we only require a certified copy of your passport. If there is a mix of foreign nationals and SA citizens, we will need the ID copies of the SA citizens as well. The registration process will take about one to two weeks.
How long does Company Registration take? Do I have to Submit every Directors ID?
At Company Partners, the process takes about 24 hours after we have received all required documents, where applicable, from you.
There’s only an online information form needed to be completed and no ID documents needed unless one of the directors is a foreigner, then we will need the ID copy.
CIPC does experience delays every now and again which can push the process up to two to three working days.
Can I trade in multiple Industries using the same company registration?
It goes back to the name of your company that could restrict you.
For example, if your company was called Kelly’s Construction Company, it would be assumed that you can only trade in the construction industry. If you are planning on trading in multiple industries under your registered name, or if you are not yet sure what industry you’re going to trade in, you would want to keep the name general. For example, Kelly’s Services.
Can I register more than one PTY in my name?
Yes, there’s no limit on the number of companies you can register under your name. Each entity is separate from each other, and you can have different partners in each company.
How do I know my company name was accepted?
When it comes to the names, you should submit at least four names in order of preference and the CIPC will pick one out of the four according to availability. So, for example, if your first name choice was not available, they will automatically pick your second choice. Once the name has been approved, a CoR 9.4 Name Reservation document will be sent to you. If it is not accepted, you need to repeat the name application process again.
As a sole proprietor, can I use my business' company name for my new PTY company?
It depends on the availability. If the name is still available at CIPC, then, yes, you can use it; but if it’s taken by someone else already registered as a trademark, you’ll have to propose new names. We will help you to figure this out.
What if I have a registered company, can I use a "Trading as" name?
Unfortunately, not. You will not be able to use a trading as name, as that was allowed with CCs which have been discontinued since 2011 and the Ptys came into effect. Now, you can only use the company name appearing on your company registration documents.
Are there any fees payable after I've registered my company?
There are no additional fees applicable after your company registration has been completed.
However, there will be Annual Returns which your company needs to pay every year to CIPC. An Annual Return is the process of updating your company’s information at CIPC and paying a fee to them to keep your business registered. This return needs to be filed at CIPC each year on the anniversary of your company’s birthday. If your Annual Return is not filed, CIPC has the right to assume you are no longer actively using your company and, therefore, they may de-register it.
Once again, Company Partners can assist you with filing this return and we even offer a cost-effective maintenance plan to ensure your company stays active, as we will do the return for you each year.
Do I have to pay taxes if my company is not making any money?
Once your company is registered, it receives its own income tax number. This income tax number needs to be registered at SARS and a registered representative, who is the person appointed with full rights to act on behalf of the company, example, one of the directors. Who is also South African, is required to be registered as well.
Now that you have an income tax number, your business is required by SARS to submit tax returns three times per year, whether the company has been trading or not. If your company is making zero income, you will still need to submit your returns as proof of zero income to SARS, as well as to avoid penalties. These returns include one IRP6 tax return in February, an IT14 return in July and another IRP6 return in August each year.
When you work through Company Partners, we’ll take care of all of this.
How can I register a close corporation (CC) or get a CK document?
If you already have an existing CC company, you may continue to use it.
However, one cannot register for CK documents, a CC or closed corporation anymore. Closed corporations are no longer allowed to be registered at CIPC. Up to 2010, you could register a CC or a private company under the Companies Act of 2008.
These two company formats were merged and only a Pty company format have been registered since. If you desperately need a CC for a specific reason, we can assist with a CC shelf company.
What are the requirements and steps to register a Pty company?
To register a company at CIPC through Company Partners, we only require your ID number and director’s information from you. If you are a foreign national, we’ll require a copy of your passport document as well. You can complete your registration within three easy steps at Company Partners. Step number one, fulfil any requirements, if applicable. Step number two, payment. And, lastly, number three, complete the online information form. It’s as simple as that.
What do I get when I register a Pty company?
If you register your Pty with CIPC directly, you’ll receive your company registration documents including the details of your company along with your company income tax number registration.
Should you choose to register your company with Company Partners, you’ll receive everything you get from CIPC and receive free essential services for your company, such as business bank account, BEE affidavit, tender assistance, website design, business training and more. We also offer special discounted packages if you need to register a business that is fully compliant in a specific industry. For example, construction package, which is all inclusive of everything you’ll need to start a construction company.
Is it necessary to have my company registered if I want to apply for tenders?
Having a registered company will not give you an unfair advantage in winning a tender, however, it is a standard requirement just to apply for any tender. If you’re on a tight deadline to apply for a tender or contract, as mentioned previously, there’s also a pre-registered shelf company which you can purchase with multiple compliance certificates included. This is perfect when applying for urgent tenders or contracts.
At which governing bodies are Company Partners registered?
Company Partners are registered with SEDA, SAIT, SAIBA, and the Institute of Directors.
We hope we have answered your questions about the Pty company registration process in South Africa.
If you have more questions or need assistance with your Company Registration, call us Toll-Free on 0800 007 269.Or simply signup for a Free Business Consultation with a Compliance SpecialistHERE.
FAQs
What do I need to know about registering a company in South Africa? ›
For every new business established, you are 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.
What are the things needed for company registration? ›- Passport.
- Election Card or Voter Identity Card.
- Ration Card.
- Driving License.
- Electricity Bill.
- Telephone Bill.
- Aadhaar Card.
- Register for VAT.
- Get a business bank account.
- Keep your bookkeeping up to date.
- Know what tax requirements you need to follow.
- Get your business online.
The normal time frame to register a pty can be anything from 3-5 business days according to cipc. However when using a professional company like Swiftreg you will get your pty registration done within 1-2 business days how excellent is that!
How long does it take register a company in South Africa? ›Company registration can take anything from about 5 days to about 5 weeks depending upon the type of company and the ability of the client to provide all of the necessary information and signatures. By far the simplest and quickest is a (Pty) Ltd. This is the one that normally takes about 5 days.
How much does it cost to register a company in SA? ›A company registration is R125 for both private company and non-profit companies registered without members. A private company must have at least one (1) director and a non-profit company must have a minimum of three (3) directors.
What is proof of company registration? ›a certificate of incorporation with certified facts. a certified copy of a document held on the register.
What documents do I need to register a limited company? ›- Registered Office. ...
- Business Activity. ...
- Director's Details. ...
- Shareholders' Details. ...
- Shareholders' Details. ...
- Secretary Details (Not Compulsory) ...
- Person with Significant Control (PSC) Details Where the person is not a director, shareholder or secretary.
R 300 filing fee. Payment of R 500 application fee.
Can I register a company name before I start trading? ›Can I register without trading? Yes, you can. This is known as setting up a “dormant company” and can be useful, even if you plan to carry on as a sole trader.
What is Pty Ltd stand for? ›
The name of a private company must end with the words '(Proprietary) Limited' or '(Pty) Ltd'.
How long does it take to get a CIPC certificate? ›BusinessNeeds Online™ will help you to obtain a Certificate within 24 Hours !
What are the four steps you need to follow when registering a private company? ›- A Notice of Incorporation form CoR14. ...
- An Initial Directors form CoR14. ...
- A Company Appointments form CoR14. ...
- A Memorandum of Incorporation (MOI) form CoR15. ...
- A Confirmation Notice of Name Reservation form CoR9. ...
- Certified identity copies of the incorporator and director(s).
Small Enterprise Development Agency (Seda)
Get your company registered on BizPortal within 24 hours. Registration only costs R175, which is made up of R50 for name reservation and R125 for company registr ation.
Many start-up entrepreneurs launch and begin trading without registering their businesses. While this is perfectly legal, there will come a time that you'll need a more formalised company if you want to land some big clients and build on your start-up success.
How long does it take to register a company with FNB? ›No queues, no hassles and a fast turnaround time of 10 days, once the application is complete. ** You can register your company from anywhere in the world.
How much is CIPC annual return? ›| Annual Turnover | Filing within 30 business days after anniversary date | Filing more than 30 business days after anniversary date |
|---|---|---|
| Less than R1 million | R100 | R150 |
| R1 million but less than R10 million | R450 | R600 |
| R10 million but less than R25 million | R2000 | R2500 |
| R25 million or more | R3000 | R4000 |
All that's required is that you are at least 18 years of age, an ID document / Passport and a South African Business Address.
How much money is required to register your company? ›Capital of the company
However, the public limited company must have a minimum paid-up capital of Rs. 5 lakh. The paid-up capital means the amount of money a company has received from shareholders in exchange for shares of the company.
- A Notice of Incorporation form CoR14. ...
- An Initial Directors form CoR14. ...
- A Company Appointments form CoR14. ...
- A Memorandum of Incorporation (MOI) form CoR15. ...
- A Confirmation Notice of Name Reservation form CoR9. ...
- Certified identity copies of the incorporator and director(s).
How much is it to register a company at FNB? ›
** You can save money when registering at CIPC as you have two options for registration, Company only (that is a Company, without name reservation – CIPC auto generates a name, based on the registration number of the company), which costs R125, or Company with a name reservation chosen by you, which costs a total of ...
Can foreigners register a company in South Africa? ›In order to register a business, foreigners do however need to have the relevant visa in their possession. A business permit (business visa) is a requirement for foreign entrepreneurs who intend to establish or run a foreign owned business.
How much does it cost to register a company at Seda? ›Small Enterprise Development Agency (Seda)
Get your company registered on BizPortal within 24 hours. Registration only costs R175, which is made up of R50 for name reservation and R125 for company registr ation.
Employees must be 70% South Africans, and in the case of non-South African employees they must hold valid work permits as determined by the Department of Home Affairs. Must be operating in a township or village. Must be registered or must apply for registration with SARS and UIF.
What is taxable income for a company South Africa? ›| Taxable income (R) | Rate of tax (R) |
|---|---|
| 0 – 75 000 | 0% |
| 75 001 – 365 000 | 7% of taxable income above 75 000 |
| 365 001 – 550 000 | 20 300 + 21% of taxable income above 365 000 |
| 550 001 and above | 59 150 + 28% of taxable income above 550 000 |
- Certified ID copy of the applicant (director/member);
- Certified ID copy of the customer filing the application;
- Multiple Deed search (reflecting ownership of immovable property or not) (as from 1 January 2022 no longer required);
BusinessNeeds Online™ will help you to obtain a Certificate within 24 Hours !
How do I pay my CIPC fees? ›- Customers can use debit and/or credit card for payment of annual returns and authorised share changes transactions ONLY.
- Only 3D secure enabled cards will be accepted.
- Only Visa and Master cards are accepted.
Capital of the company
However, the public limited company must have a minimum paid-up capital of Rs. 5 lakh. The paid-up capital means the amount of money a company has received from shareholders in exchange for shares of the company.
Need assistance with your company registration? Operating your business as a company separate from our personal affairs has many advantages. Standard Bank has partnered with CIPC who will guide you through your business registration.
Do foreigners pay tax in South Africa? ›
South Africa has a residence-based tax system, which means residents are, subject to certain exclusions, taxed on their worldwide income, irrespective of where their income was earned. By contrast, non-residents are taxed on their income from a South African source.
Can a non South African register a company in South Africa? ›Registering a Company in South Africa: Requirements
Non-South African Citizens are allowed to open a South African Private Company and become a Director and / or Shareholder with a Valid Passport or Refugee Document.
3. Who can be appointed as a director? The definition of “director” in the Companies Act includes a member of a board of a company, or an alternate director of a company, and includes any person occupying the position of a director or alternate director, by whatever name designated.