Do You Have To Register A Small Business
UPDATE: This article was originally published in May 2014; due to its popularity it'southward been updated with new information on 20 September 2021.
Regardless of whether you are a making profit or the size of your visitor, there are advantages to registering your business in South Africa. These include business name protection, tax incentives, financial assistance and concern compliance.
Nosotros respond all your other often asked questions (FAQs) nigh registering a new business organisation:
Where exercise I register my small business?
- You can register your company online on the Companies and Intellectual Belongings Commission (CIPC) website, or on the Bizportal.gov.za website, a platform created by the CIPC that offers company registration and related services.
- Y'all can besides register your company via a banking company, including Nedbank and Start National Bank.
- [UPDATE] Another fashion to register your business is to outsource the admin to businesses that have the expertise to offer visitor registration services and related services. Many of them provide packaged services that include visitor registration and related services such equally SARS consulting, labour registrations, CIDB registration, and upgrades, tax returns/ compliance, or bookkeeping services. Read more hither
If you lot would like to speak to a professional person to guide you through the process of registering your business concern, you can bring together Startwise. Startwise is an online consulting platform built exclusively for South African SME'southward to have access to experts in their fields to guide you on all aspects of starting your own business.
What is the CIPC and what does the law say?
The Companies and Intellectual Property Registration Office (CIPRO) was replaced by the Companies and Intellectual Property Commission (CIPC) in May 2011, together with the New Companies Deed, the deed changed the mode business organization owners had to register their companies. The Human activity stipulates that no new close corporations (CC) can exist registered, but those registered prior to ane May could proceed to operate every bit CCs.
All companies fall under specific categories with, each with specific requirements in terms of the documentation that is required. The Companies Human activity provides for two main categories of companies – non-turn a profit and profit companies, with other types falling under these categories.
What types of companies can annals with the CIPC?
You tin choose to register your visitor as i of the following:
one. Non-profit companies: A company incorporated for public benefit or other object relating to 1 or more cultural or social activities, or communal or group interests.
two. Profit companies: A business concern/organisation whose primary goal is making money, this includes anything from retail stores to restaurants to insurance companies to real estate companies.
3. Personal liability companies: Company directors and past directors are jointly liable for any debts and liabilities arising during their periods in office. The company proper noun ends with the word 'incorporated'.
iv. Public companies: A public visitor is i that has issued securities through an initial public offering (IPO) and is traded on at least i stock exchange. Information technology has more than fifty shareholders and its shares are offered to the public.
5. Private companies: These are similar to what was previously known as shut corporations. Some of the changes made to private companies include fewer disclosure and transparency requirements, no longer being limited to 50 shareholders, and with a lath that must comprise at least one director. The name of a individual company must terminate with the expression 'Proprietary Express' or '(Pty) Ltd'.
How long does it take to register a company?
According to the Online PTY Registration, a proper name reservation takes betwixt 7 to 21 days. A company certificate can be registered inside three to five days subsequently, depending on whether you have submitted your documents on time, and the workload of the registrar's office.
How many Directors are allowed in a company?
At least i director.
Can I register a company if I have been blacklisted?
Yes.
Tin foreigners register a company in South Africa?
Aye. In order to practise this, you lot demand to provide a valid passport copy or RSA ID document and accept a residential address in S Africa.
Am I allowed to annals a company without a company proper noun?
Aye. Co-ordinate to the CIPC, in terms of the Companies Act, 2008, a company may be registered with or without a company proper noun. A company that is registered without a reserved proper noun will all the same get a registration number, this will automatically become the visitor's name.
CIPC says the company can transact with a trading (business) name or may apply to add a reserved proper name at a afterward stage. In this instance, the visitor volition need to showtime reserve a proper noun and then apply for a name change.
How does the name reservation piece of work?
The process: According to the CIPC, if your initial proper name reservation application is not approved, you will need to apply for new names. During each application process you may apply for upward to iv names during each application process.
The price: Each name reservation application costs R50. A company registration may vary between R125 and R475 (R125 for a individual visitor, R475 for a non-profit company registered without members).
Should I register my new small business for tax?
For every new business established, you are required to register with your local SARS part to obtain an income taxation reference number. Registration must be done within 60 days after starting operations past completing an IT77 form, available at your local SARS part or from the SARS website.
Pocket-size businesses with a turnover of up to R1 million per annum will now be able to pay certain taxes (turnover tax, VAT and employees' revenue enhancement) twice instead of once a yr, making the process more efficient for qualifying pocket-size business organization owners.
Turnover tax is a simplified tax system to make it easier for micro businesses to comply with their tax obligations. Turnover tax is worked out by applying a tax charge per unit to the taxable turnover of a micro business. Depending on other factors such every bit turnover, payroll amounts, whether you lot are involved in imports and exports etc. you lot could also be liable to register for other taxes, duties, levies and contributions such as VAT, PAYE (Pay-as-you-earn) UIF contributions (unemployment insurance contributions).
Where tin can I apply for funding after registering my business?
According to the Due south African Government, yous can employ for various types of funding which is bachelor through the Industrial Development Corporation or the Department of Merchandise and Industry'southward Regime Investment Incentives. As well government funding, yous tin besides apply for funding from the private sector.
- Full GUIDE TO Regime FUNDING AVAILABLE Hither
- SEE ALSO: Crowdfunding in South Africa
What support is bachelor to me after I have registered my business concern?
The Small-scale Enterprise Evolution Bureau (Seda) provides business development and support services for pocket-sized enterprises. Seda will give you all the information you need to start a concern, including how to write a business plan, and once you lot have a business organization, to grow it.
- FIND OUT EVERYTHING YOU NEED TO START A Business organization IN SOUTH AFRICA HERE
- SEE ALSO: Everything Yous Need To Know About Enterprise and Supplier Development In Southward Africa
[UPDATE: 20 September 2021]
Other Services You Tin Use for on the CIPC Portal
You can also employ for the following services on the Bizportal.gov.za portal: business organization bank accounts, taxation registration, B-BBEE certificates, Bounty Fund and UIF registration, Company name changes, accost changes, and Annual Returns (Turnover based). For the Annual Returns (Turnover based) yous tin can pay from R100. The remainder of the above services are free.
Here are 6 legal documents yous may need to start your own business.
Should I annals my company domain proper name as well?
In 2018 , the .ZA Domain Name Authorization (ZADNA), partnered with the Companies and Intellectual Belongings Committee (CIPC) to enable businesses to register their domain name and business concern name simultaneously.
Domain name registration should be role of your trademark protection process.
"It is highly critical for a business to secure its domain proper noun equally early as possible to prevent online brand identity theft. A domain name gives your business digital presence and accessibility moreover, information technology enables a business an online brand establishment," said Affections Selebano , Communications and Awareness Coordinator at .ZA Domain Proper noun Authority (ZADNA).
The to a higher place information is sourced by the Online PTY Registration, CIPC, Due south African Government website, and Sars. It was originally published in May 2014.
- Looking for a Professional that can Help with Registering Your Business organization? Notice ane on Serv
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Source: https://smesouthafrica.co.za/basics-of-registering-a-business/
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