What kind of online business can I start?
- Online store: selling physical products you make, buy in bulk or source on demand
- Digital products: templates, courses, e-books, software, stock photos
- Online services: design, bookkeeping, marketing, tutoring, consulting
- Software and apps: a subscription product or a custom-built app
- Marketplace seller: selling through existing marketplaces before building your own store
How do I start an online business in South Africa?
- Choose your product or service and check that people will pay for it
- Register the business (company or sole proprietor) and register for tax
- Register a domain name and a professional email address
- Build a website or online store
- Set up a payment gateway and a business bank account
- Plan delivery, returns and customer service
- Publish the legal pages: terms, privacy policy, returns policy
- Market the business and track what brings sales
How much does it cost to start an online business?
| Cost item | Notes |
|---|---|
| Registration | Company registration if you choose a (Pty) Ltd |
| Domain and email | A .co.za domain and professional email |
| Website or store | Build it yourself on a platform, or have it built |
| Hosting and platform fees | Monthly or yearly |
| Payment gateway fees | A percentage per transaction |
| Stock and packaging | For physical products |
| Marketing | Social media ads, search ads, content |
Do I need to register an online business?
You must declare income from an online business to SARS, whether or not you register a company. A registered company is helpful if you want a merchant account, business clients or funding, or if you want to separate personal and business liability. See how to register a company.
What laws apply to online businesses in South Africa?
- ECT Act: websites that sell goods or services must show certain information, such as the business's full name, legal status, physical and contact addresses, registration number, prices, delivery and return terms. Consumers have a cooling-off period to cancel many online purchases.
- Consumer Protection Act (CPA): consumers have rights to fair terms, safe goods, clear pricing and returns of defective goods.
- POPIA: if you collect names, emails, phone numbers or addresses, you must process them lawfully, keep them secure, use them only for the stated purpose, and respect opt-outs. Appoint an information officer; for a company this is usually the CEO or owner.
- Direct marketing: marketing by email or SMS needs consent or an existing customer relationship, and every message must allow an opt-out.
How do I take payments online?
Use a South African payment gateway that supports cards, instant EFT and other local methods, linked to a business bank account. Offer the payment methods your customers already use, and test the full checkout, including the confirmation email and the refund process, before you launch.
What tax requirements apply?
Register for income tax. VAT becomes compulsory once taxable turnover exceeds R2.3 million in 12 months (from 1 April 2026). If you sell to customers in other countries or import goods, check customs and foreign VAT rules for those markets.
How do I deliver products?
Choose between courier companies, locker and pick-up point services, the post office, or local delivery for nearby customers. Show delivery costs and times clearly before checkout, and decide who pays for returns. See how to start a courier business if you want to deliver yourself.
How do I get customers for an online business?
- Search engine optimisation: helpful content that answers your customers' questions
- Social media: Instagram, TikTok, Facebook and WhatsApp Business
- Paid ads, once you know your profit per sale
- Marketplaces, to reach buyers before your own store has traffic
- Reviews and referrals from real customers
- An email list, built with consent
What are the common mistakes?
- Building an expensive website before testing whether anyone will buy
- Missing the ECT Act information and legal pages
- Collecting personal information without a privacy policy or consent
- Hidden delivery costs that cause abandoned carts
- Not tracking which marketing actually brings sales
How can Uminathi help?
You can follow these steps yourself. Uminathi can register your company, set up your domain and professional email, and build a website or online store ready for local payments.
Step by step
- Validate your idea. Confirm that customers will pay for your product or service before investing heavily.
- Register business and tax. Register a company or trade as a sole proprietor, and register with SARS.
- Get a domain and email. Register a .co.za domain and a professional email address.
- Build your website or store. Build on a platform or have it built, with clear products and prices.
- Set up payments. Connect a South African payment gateway to a business bank account.
- Publish legal pages. Add ECT Act business information, terms, a privacy policy and a returns policy.
- Launch and market. Promote through search, social media and marketplaces, and track results.