South Africa's Companies and Intellectual Property Commission (CIPC) has made the registration of businesses for locals easy via the e-Services portal. Individuals and entities can use the site to complete the full procedure, from name search to registration, at their leisure. This is necessary to formalize a business to receive certain corporate and government protections.
Companies in South Africa can be broadly classified in the following categories
- Private Companies: This type of company has a share capital and the liability of each member is limited to the amount, if any, unpaid on their shares. A private company cannot offer its shares for sale to the public and may not have more than fifty (50) members.
- Public Companies: A public company has a share capital which limits the liability of each member to the amount unpaid on their shares. It may offer its shares for sale to the public and may be listed on a stock exchange.
- Personal Liability Companies: This type of company has no limit on its members' debts and liability and is registered by professional bodies such as lawyers, accountants, realtors, etc. Directors and ex-directors of these firms are liable for debts having occurred during their tenure on the board of the company. Personal liability companies may only be registered manually.
Business Registration Requirements in South Africa
The requirements for Registering a Company in South Africa include the following:
- Proposed Company/Business name
The proposed business name search is conducted to ensure it is not similar to an existing registered business. If approved, it is reserved for 60 days. CIPC allows for a maximum of 4 names to be submitted. - Objectives of the Business
The objective of the business should contain what the business or company is set to carry out. the business must be entirely legal and not against public policy. - Physical Office Address
A physical business address is one of the strict mandatory requirements for businesses to operate in South Africa - Names of the Directors, contact details, and
email
For transparency and accountability purposes, CIPC requires that the director's information be indicated on the application for registration. - Proof of Identification
A valid and unexpired proof of identification must be provided for each director and shareholder during the registration process. Proof of ID for citizens can range from national identity documents, to drivers' licenses as provided by the law. - Passport Photo
A clear and recent passport photograph must be provided for each director and officer of the company.
In addition, the following forms must be signed by all directors and submitted during registration. - Form CoR14.1 – Notice of Incorporation.
- Form CoR14.1A – Notice of Incorporation, Intial Directors of the Company.
- Form CoR14.3 – Registration Certificate.
- Form CoR15.1 – This is the Memorandum of the company with share capital.
e-Services and BizPortal South Africa
In 2019, the South African government took steps to ease the operation of businesses in the country. Company registration processes are now fully online and must be done on the E-Services platform. Alternatively, business registration can be carried out through the bizportal website. The CIPC created this platform to mainly handle company registration matters. Payment is made via electronic means such as mobile money, credit, or debit cards.
How to register a business name in South Africa?
A business name registration is an affordable alternative to incorporating a company in South Africa. However, this structure does not offer the protection of limited liability. Registration starts with the business name reservation, after approval, registration commences. The proprietor must specify the nature of the business; the application must indicate the physical address of the business and proprietor(s) details. All documentation must also be signed. Foreigners are only allowed to incorporate a company, and the process is slightly different. Details are provided here.
What is a company registration number used for in South Africa?
A company registration number is usually issued after the entire registration process has been completed. This number makes it easy to search up the details of any business, such as the registration date and current active status of the company. Interestingly, if an entity does not register a business name during incorporation, their registration serial number will be used as their business name identification by the CIPC however, a non-profit must have a business name.
How much does it cost to register a business in South Africa?
The cost associated with business registration depends on the type of entity to be registered. CIPC keeps a comprehensive fee schedule that can be accessed here.
Non profit Organizations (NPO)
Non-profit organizations in South Africa are firms established for the benefit of the public. This entity does not operate to make profit but may still carry out commercial activities. As such, there are special tax incentives only available to non-profit companies. To register, one would need to submit the NPO application form along with two copies of the company's founding documents to the provincial social development office nearest to your place of business. A good example of NPOs are churches.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.