Business & Companies
Registering a Company in South Africa
Starting a business often means registering a company so it has its own legal identity, separate from its owners. In South Africa, companies are registered under the Companies Act 71 of 2008.
This guide explains the basics of company registration, in particular the private company, or Pty Ltd, that most small businesses use.
What a company is
A company is a separate legal person. It can own assets, enter contracts and incur debts in its own name, separate from its shareholders.
This separation is one of the main reasons people register a company: it can limit the owners' personal exposure, although directors still have legal duties and responsibilities.
The private company (Pty Ltd)
The most common type for small and medium businesses is the private company, shown by the letters (Pty) Ltd after its name. Its shares are not offered to the public.
A private company must have at least one director and one shareholder, who can be the same person, and it is governed by its Memorandum of Incorporation.
Registering through CIPC
Companies are registered with the Companies and Intellectual Property Commission, known as CIPC. Registration includes reserving a name and lodging the company's founding documents.
Once registered, the company receives a registration number and a registration certificate confirming it legally exists.
Starting a business in South Africa?
Let us handle your company registrationWhat to set up after registration
- Register the company for tax with SARS, and for VAT if it is required or beneficial.
- Open a business bank account in the company's name.
- Put proper shareholder and director arrangements in place, such as a shareholders agreement where there is more than one owner.
- Keep company records and meet ongoing filing obligations, such as annual returns to CIPC.
Company registered? Make sure the post-registration steps are done right.
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