Starting a business is exciting, but it also means having a long and sometimes daunting to-do list. One of the things you can tick off this list without breaking a sweat — or your bank account — is registering your company. Let’s delve into what you have to do to get some movement on that list of yours.
Step 1: Get your ducks in a row
No one likes building momentum only to grind to a halt because one small, seemingly insignificant thing is missing. Make sure you work through the list below before you start with the process to avoid just that.
Questions to answer
Firstly, what type of company do you want to register? You need to be able to answer these two questions:
What is your aim in terms of profit:
Will it be a for-profit company or a not-for-profit company?
What type of structure do you want to register?
A private company
A public company
A personal liability company
Then, have you decided on a company name? You can register the company without it, but it saves you the red tape of changing it later. If you want to reserve a name now, you’ll need 2 alternative name ideas that you’ll be happy with if your first choice isn’t available.
Who are the directors of the company going to be? You must have at least one.
When do you want the company’s financial year-end to be?
How many shares do you want to authorise? You can choose between 1000 and 10 000. Remember that you are only authorising the shares; you aren’t issuing them yet.
Admin to have in place
Then, there is some basic admin you need to have in place before starting the application:
The full names, surnames & ID numbers of all of the directors. You will eventually need certified copies of their IDs as well.
The address that you choose for the company’s registered address.
Step 2: Register as a customer with the CIPC
Before jumping straight in, it’s important that you start off at the right place. You can register a company via CIPC, but you can also register a company by making use of BizPortal, CIPC’s little sister. We recommend making use of CIPC, as their registration process is much simpler than that of BizPortal. Click the button below to visit the portal.
From here, you’ll simply follow the steps as prompted to register a profile after which you will be a “customer”. You can’t register a company yourself without being a customer. To register, you only need your own basic contact information and importantly, a South African identity number.
While it’s free to register as a CIPC customer, you will need to load credit to reserve a company name and register the company. At the time of posting (16 July 2023) it will cost you R50 to reserve your company name, and R150 to register. For the full price list, click the button below.
Step 3: The application
The application is split into two parts: (1) The name reservation, and (2) The physical application. Once again, you’ll simply follow CIPC’s instructions. This is where you will provide CIPC with the information that you’ve already gathered.
Step 4: Snail (e)mail - confirming your registration
Once you've submitted your application, the following will happen:
CIPC will send you a basic form or two to sign via email.
You’ll send the signed forms back together with certified copies of the directors’ IDs.
CIPC will send you confirmation of registration.
Step 5: The world is your oyster
Now that your company is registered, there are many (very important!) things that you can also tick off of your to-do list.
Open a bank account;
Register for tax;
Conclude agreements in the name of the company, instead of your own;
Do what you love and watch your business blossom from an idea to an income.
And that’s that! Registering a business in South Africa doesn’t have to be a daunting experience. By following these simple steps, you can register your business and start operating in no time. Good luck on your business journey, and be sure to give us a shout if you need help with (almost) anything.