Company registration in South Africa for new businesses and established businesses intending to expand beyond their initial sphere of influence is no longer a difficult task. Technology has made everything easier. This is why a business owner can visit a website built for the registration process instead of the former method of physical presence in a long queue. South Africa is one of the most developed economies in Africa. Besides, it has one of the most advanced standard infrastructures that create a boost to business activities being carried out. Aside from its developed economy and infrastructure, registering a business in South Africa comes with great benefits.
Benefits of Company Registration in South Africa
Below are the benefits of registering company in South Africa:
There have been issues surrounding the use of a company’s name by another company. While this may seem like a not-so-important matter, it can cause a setback. Therefore, registering a business in South Africa will make the name of your company to be legally approved and thus prevent any possibility of theft of business name
Having a company registration in South Africa approved increases the credibility of the founder. If it is approved by the authority in charge, it means it can be trusted. If it can be trusted, then investing in it will be a wise decision. Every company needs investors. Registering a business in this place makes it easier to attract investors and convince potential investors about the safety of their investment.
A registered business is eligible to submit an application for tenders and contracts of many suppliers and Government Departments. These bodies are very interested in the seriousness of a venture that will collaborate with them to deliver a service or product. One of the ways they confirm this is knowing whether the business has a place on the list of legally approved businesses.
It is easy to separate personal assets and life from the assets and risks that are for your business.
Steps to Take in Registering a Company in South Africa
Visit the website of the Companies and Intellectual Property Commission (CIPC) to create an account. There is a customer registration link on the homepage that will redirect you to the main platform for registration (1). It is required to fill in all the important details demanded on the online form. Also, it is important to deposit funds into this account to make a transaction on the platform.
Give the business a name. This must come with a lot of reflection on the kind of name that will have a strong impression on the target customers. This will help to enhance the required marketing and branding initiative of the company. The name should be simple, easy to remember, and spell. Once this is decided, proceed to reserve a name on the website (2). It is required to drop alternative names in case the preferred name is already in use. So, it is advisable to pick names that will make a good impression and are suitable for what you are doing.
Understand the type of business you want to register. You may want to seek the guidance of business advisors or legal practitioners on the kind of business entity that is most suitable for your kind of business. You can pick from various types of businesses except for Close Corporations that are not accepted to be registered in South Africa. During registration, companies are given a Standard Memorandum of Incorporation that contains the rules guiding the business, its activities, and structure.
Once the activities required on the Transact page where you get the name of your company approved are completed, the next thing is to proceed with the registration of the company. This is done on the page meant for company registration. Enter all the required details about its founder, incorporators, and directors. Once this is done, you need to complete information about the business to be registered online. Information such as the period of its financial year ending, shares issued among other important things will be provided. What follows this step is adopting the reserved name as the official name of the company after which the final document confirming the registration will be sent to be signed and dated by the director or incorporator.
The document previously sent will be submitted to CIPC with supporting documents such as:Letter confirming the reservation of name
Signed COR 15.1A form
South African ID or
Power of Attorney form for someone representing the stakeholders of the company
Once this is done, you can send them via mail with the tracking number you have been given (3). In 3 days, a reply will be sent congratulating you for successful company registration in South Africa.
With the right knowledge at our disposal, we save ourselves from a lot of stress and do what we have to do in a short period. The ease that comes with registering a business in South Africa is interesting and attractive to new businesses intending to have a base on the South African territory.
(1) Input www.cipc.co.za for the registration.
(2) It costs R50 to reserve a name and R125 for registering a business in South Africa with a standard Memorandum of Incorporation.
(3) This is the mail to send the documents to eServicesCoReg@cipc.co.za