How to register a company in South Africa: CIPC and SARS step by step
Register a private company online on CIPC’s BizPortal, then set up SARS, and register for VAT and payroll taxes only when you need to. Registration is quick and cheap. The follow-up duties are where businesses slip.
In short
- Register a Pty Ltd on the CIPC BizPortal. The fee for a private company is R125. Reserving a name is an optional R50.
- Registration gives the company an income tax number, but the company still needs a SARS registered representative before it can use eFiling.
- Register for VAT when taxable supplies pass R2.3 million in 12 months. Voluntary registration starts at R120,000. Register for PAYE, UIF and SDL when you pay staff.
- After registration come annual returns, a beneficial ownership declaration and financial statements. Missing them can put the company at risk of deregistration.
Company or sole proprietor first?
A company is a separate legal person, which limits your personal liability and changes how profits are taxed. A sole proprietor is simpler and has no registration cost, but you and the business are the same person. The tax difference depends on profit and how you pay yourself, so read sole proprietor or company: tax compared before you decide.
How to register on BizPortal, step by step
- Create a BizPortal account with your South African ID number at bizportal.gov.za.
- Choose company registration and the private company type.
- Enter your proposed names in order of preference, or choose to register without a reserved name, in which case the registration number becomes the name.
- Add each director exactly as their details appear on their ID.
- Enter the registered address and the financial year-end.
- Pay the fee. CIPC emails the registration certificate and the Memorandum of Incorporation once it is processed.
A standard private company registration often completes within a working day or two. A rejected name or a customised Memorandum of Incorporation takes longer.
CIPC fees
| Item | Fee |
|---|---|
| Private company registration | R125 |
| Name reservation (1 to 4 names per application) | R50, non-refundable |
| Extending a reserved name (valid 6 months) | R30 |
| Non-profit company without members | R475 |
These are the fees CIPC published at the date of this article. CIPC changes its fee schedule from time to time, so check before you pay.
What SARS needs after registration
- Income tax number. Issued to the company as part of registration.
- A registered representative. A company cannot use SARS eFiling by itself. A person, usually a director, must be registered as its representative.
- VAT. Registration is compulsory once taxable supplies pass R2.3 million in any 12 months and voluntary from R120,000. See the VAT registration guide.
- PAYE, UIF and SDL. Register as an employer when you start paying staff. See payroll in South Africa.
Annual duties after registration
- CIPC annual return, every year in the anniversary month, with the annual fee.
- Beneficial ownership declaration to CIPC, naming the people who own or control the company. Check CIPC for the current deadline.
- Financial statements and tax returns each year, and VAT and payroll returns during it. Our compliance calendar sets out the dates.
- Records kept for the periods the law sets. See recording accounting transactions.
Doing it yourself or with an accountant
You can register a standard private company yourself in an afternoon. An accountant earns their fee on the decisions around it: whether to register at all, who should hold shares, how to pay yourself, when to register for VAT and how to keep the company compliant afterwards.
What to do now
- Decide the structure and who the directors and shareholders will be.
- Pick three name options and register on BizPortal.
- Appoint a SARS registered representative and set up eFiling.
- Open a business bank account and keep personal spending out of it.
- Diarise the annual return and the beneficial ownership declaration.
Frequently asked questions
How long does it take to register a company in South Africa?
A standard private company registration on BizPortal can complete within a day or two. A rejected name, or a customised Memorandum of Incorporation, takes longer.
How much does it cost to register a company in South Africa?
CIPC’s fee for a private company is R125. Reserving a name is an optional R50. Fees change, so confirm them on CIPC before you pay. An accountant or registration agent charges separately for their work.
Do I need a registered address?
Yes. A company must have a registered office address in South Africa, and you enter it when you register.
Do I register for VAT when I register the company?
Not automatically. Register once your taxable supplies pass R2.3 million in 12 months, or voluntarily from R120,000 if it suits you. The income tax number is issued with registration, but VAT is a separate application.
What happens if I miss the annual return?
CIPC can deregister companies that do not file annual returns, which can disrupt banking and contracts. File every year, including when the company is dormant.
Sources and further reading
This article is general information for South African businesses. It is not tax, legal or financial advice, and it reflects the rules and figures at the date shown above. Rules and fees change, so confirm the current position before you act.