To register a company in South Africa, you must apply with the Companies and Intellectual Property Commission (CIPC). You will need to provide personal details for all directors, the company’s address, and a Memorandum of Incorporation (MOI). Once CIPC registration is complete, the company is automatically registered for income tax with the South African Revenue Service (SARS).
Key requirements
- Company Name: You can reserve a unique name beforehand or use your company’s registration number as its name. The name of a private company must end with “(Pty) Ltd”.
- Company Address: You must provide a physical business address within South Africa. You also need proof of address for all directors.
- Memorandum of Incorporation (MOI): The MOI is a legal document that sets the rules for how the company will be run. CIPC provides a standard MOI that is suitable for most small businesses, but you can also create a custom version.
- Directors and Incorporators:
- A private company requires at least one director, while a non-profit company needs at least three.
- All directors and incorporators must provide certified copies of their ID documents (or passports for non-South African citizens). The certification must be dated within the last three months.
- Shareholding (for profit companies): You must specify the share capital and how shares are allocated among shareholders. All shareholders must be listed during the registration process.
- Company Forms: You will need to complete and submit the following forms to CIPC:
- Notice of Incorporation (CoR 14.1): The official application to form a company.
- Memorandum of Incorporation (CoR 15.1A): The standard MOI document.
- CIPC Customer Code: You must have a customer code and sufficient credit on your CIPC account to cover the registration fees.
Post-registration requirements
Once your company is registered with CIPC and automatically receives a SARS income tax number, other registrations may be required depending on your business activities:
- Business Bank Account: It is mandatory to open a business bank account to register your company.
- VAT Registration: If your company’s turnover is expected to exceed R1 million in a consecutive 12-month period, you must register for VAT with SARS.
- Employee-related registrations: If you hire staff, you are legally required to register with the following:
- Unemployment Insurance Fund (UIF): You must register with UIF if you employ staff for more than one day a month.
- Compensation Fund: You must register with the Compensation Fund for Occupational Injuries and Diseases (COID) if you hire one or more employees.
- B-BBEE Certificate: Small companies with an annual turnover under R10 million can complete a free Broad-Based Black Economic Empowerment (B-BBEE) affidavit via BizPortal.
- Customs and Excise: If you intend to import or export goods, you must register with SARS for an import/export license.
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