What does it mean to register a company?
Registering a company creates a separate legal person in the CIPC register. The company can sign contracts, own assets, open a bank account and owe money in its own name, which separates your personal finances from the business.
You do not have to register a company to trade. You can work as a sole proprietor and declare the income in your personal tax return. But most corporate clients, banks, funders and all government buyers expect a registered company.
Which type of business should I register?
For most new businesses the answer is a private company, (Pty) Ltd. It is quick to register, needs only one director, and is what clients and tender documents expect.
| Structure | Suitable for | Key considerations |
|---|---|---|
| Sole proprietor | Testing an idea, freelancers, very small operations | No CIPC registration; you are personally liable for business debts |
| Private company (Pty) Ltd | Most small and growing businesses | Separate legal person; yearly CIPC annual returns and its own tax returns |
| Non-profit company (NPC) | Community, charitable and social organisations | Cannot distribute profits to members; different tax rules |
| Partnership | Two or more people sharing a business | No separate legal person; partners share liability |
| Co-operative | Members running a business together | Registered with CIPC under the Co-operatives Act |
Close corporations (CCs) can no longer be registered. Existing CCs can still operate.
What documents do I need to register a company?
You need the following for each director:
- A certified copy of their South African ID (or passport for foreign nationals)
- Their residential address, email address and cellphone number
And for the company:
- Two to four name options, in order of preference (or register with the registration number as the name and change it later)
- The registered business address
- The number of shares and who owns them
How do I choose a company name?
Choose a name that is not already registered and is not too similar to an existing company or trade mark. CIPC rejects names that are identical, confusingly similar, offensive or that suggest a link to government without permission.
Practical tips:
- Search the name on the CIPC website before applying
- Give more than one option, in order of preference
- Keep it short and easy to spell, and check the matching website domain is available
- Remember a registered company name is not a trade mark. Register a trade mark separately if the brand is valuable
How long does company registration take?
Registration usually takes a few working days once CIPC approves the name and the documents are correct. Delays mostly come from rejected names, unclear ID copies or details that do not match the Department of Home Affairs records.
How much does it cost to register a company?
You pay CIPC's official filing fees for the name reservation and the registration. If you use a service provider, you also pay their fee. Uminathi registers a private company for R650, which includes the work of preparing and submitting the application. Check the current official CIPC fees on the CIPC website before you apply yourself.
What happens after my company is registered?
Registration is the start, not the finish. After you receive your COR 14.3:
- Open a business bank account in the company's name. See how to open a business bank account.
- Check your tax number. SARS usually registers new companies for income tax from CIPC's records. Confirm the number on SARS eFiling and register for other taxes (VAT, PAYE) when they apply.
- File beneficial ownership information with CIPC, showing who ultimately owns or controls the company, and keep it up to date.
- Issue share certificates to the shareholders and keep a securities register.
- Register on CSD if you want to sell to government. See CSD registration.
- Diarise your annual return. It is due every year in the month the company was registered. See CIPC annual returns.
What are the common mistakes when registering a company?
- Using blurry or uncertified ID copies, which leads to rejections
- Picking a name that is too close to an existing business
- Registering, then never opening a bank account or checking the tax number
- Forgetting beneficial ownership filing and annual returns
- Leaving a director who has left the business on the CIPC record
Which business guides should I read next?
Once your company is registered, the next step depends on your industry. These guides cover the industry-specific steps:
- How to start a cleaning business
- How to start a construction company
- How to start a food business
- How to start an online business
- How to start a security company
Step by step
- Choose your structure. Decide whether a private company (Pty) Ltd suits you, or whether to start as a sole proprietor.
- Prepare director documents. Get certified ID copies and contact details for every director.
- Choose name options. Search CIPC for similar names and prepare two to four options in order of preference.
- Apply on CIPC eServices or BizPortal. Create a customer profile, submit the name reservation and company registration, and pay the CIPC fees.
- Receive your COR 14.3. CIPC emails the registration certificate and company documents once the application is approved.
- Complete the after-registration steps. Open a bank account, confirm the SARS tax number, file beneficial ownership and diarise your annual return.