DIY law: How to register your own business

*This feature was compiled by Helene Viljoen, attorney and director of law firm Helene Viljoen Incorporated.

The journey to becoming an entrepreneur is not for the faint-hearted. When faced with market research, securing financing, coming up with a business plan and establishing a sustainable customer base, many find the process overwhelming. On top of that, there’s a bunch of administrative and regulatory red tape involved.

Registering your business is one example. Thanks to the Companies and Intellectual Property Commission (CIPC), you can now register your business online – sometimes, this can even be done in a day or two!

This article looks at registering a business online and provides guidance on how to do it.

Many South African businesses do not have to be registered, such as sole proprietors and partnerships. Sole proprietors are people who use their own money and assets to bring the business to life and sustain it, and assume the risks of their business dealings. Partnerships consist of two to 20 people who share legal and financial liability.

• Which types of businesses need to be registered?

South Africa’s Companies Act 71 of 2008 makes provisions for various for-profit company types. Examples include private companies, public companies, and personal liability companies.

Private companies are separate legal entities from their owners, while personal liability companies entail that directors are jointly liable for liabilities and debts. Public companies are allowed to offer shares for sale to the public.

• How do I register a company online?

Firstly, you will need to register with the CIPC via its e-portal. Then, you will need to log in to their website. Once logged in, click on ‘Transact’ and ‘Company registration’. Click on ‘Register using Bizportal’. You will be redirected to the Bizportal website, a platform developed by the CIPC. Follow the prompts to register your company.

• How are companies named?

While this may sound odd, a company does not need a name to be registered. The CIPC assigns a registration number to each company, by which it is identified. Where no name has been provided by the applicant, a company’s registration number becomes its name, and a trading name may then be used in practice.

If you would like to register a name, you may reserve one at a cost of R50.

• What will I need for the registration process?

– According to the CIPC, company registration costs R125.

– A private company must have at least one director, whereas a non-profit company must have a minimum of three directors.

– A bank card able to transact online.

– A list of four proposed names for your company, if you do not want it to be registered only by registration number.

– All directors’ identity documents and marriage certificates.

– You may need to provide proof of the business’ physical address.

– You may be required to confirm the business’ financial year-end.

• Registration is only the beginning

CIPC company registrations usually provide a SARS income tax reference number. You will need to determine which taxes your business will be liable for, and ensure that your taxes are always up to date. At this point, appointing an accountant to assist you in ensuring compliance should be seriously considered.

Contact the CIPC at 086 100 2472.