How to register a small business in South Africa 2022: Critical steps

How to register a small business in South Africa 2022: Critical steps

South Africa has many profitable business opportunities for small and medium entrepreneurs. Some are in more demand than others, and entrepreneurs rush to set these businesses up. However, before they do, they have to go through the manual on how to register a small business in South Africa. Check it out.

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How to register a small business in South Africa
You have to register your business or company as per the manual on how to register a small business in South Africa for officialism and tax purposes. Photo: @innovatiiveconnections
Source: Instagram

South Africa provides business development and supports services for small enterprises. For this reason, most residents are setting up businesses to fill different market gaps. However, it is vital to through the manual of how to register a small business in South Africa. Keep reading to discover what the manual expects of these entrepreneurs.

How to register a small business in South Africa

Before we delve into how companies register for business in Mzansi, let us first answer some frequently asked questions about the same concept. They are as follows:

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Do I need to register my small business in South Africa?

Yes, you do. You are legally required to register any new business with your local SARS office to get an income tax reference number. Within two months of starting operations, you must complete this process by filling out an IT77 form. You can get the form at your local South Africa Revenue Service (SARS) office or from the SARS website.

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Can I run a business without registering in South Africa?

You can legally operate a sole proprietorship without registering your company as it is not a legal entity. However, you cannot use any business name until you register it as an officially recognized business entity with the local state authorities and Internal Revenue Service.

Does a sole proprietor need a registration number in South Africa?

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How to register a small business in South Africa and a sole proprietorship
Although you do not need to register a sole proprietorship, other legal and tax requirements are mandatory. Photo: @oceanebusinessservices
Source: Instagram

Although registration for sole proprietorship may not be necessary, the standard legal and tax requirements are mandatory. So, you will have to register the business with the SARS for tax return purposes.

How do I register my small business?

Finding a market niche with untapped potential is half the equation. You also need to review and understand the steps of registering a business in South Africa. A South African company registers its business using different methods. They include:

  • Online on the Companies and Intellectual Property Commission (CIPC) website. The process is as follows:
  1. Log in to the website.
  2. Click on Register a new company.
  3. Select the name reservation option.
  4. Print the emailed form and have it signed.
  5. Attach the other required documentation and email them to eServicesCoReg@cipc.co.za.
  • New E-services portal
  • On CIPC's Bizportal.gov.za website
  • Through banks such as First National Bank and Nedbank

Steps to register a company in South Africa

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Steps on how to register a small business in South Africa
You can register a small business or company in South Africa in several ways. One of them is through the new E-services portal. Photo: @smallbizsatza
Source: Instagram

As we mentioned earlier, starting a business in South Africa requires you to register it for official recognition and purposes for tax returns. Here is a step-by-step guide on how to register a company in South Africa on the new E-services platform:

1. Log in to the www.cipc.co.za website using your credentials. Click on On-line transacting/New E-services.

2. Fill in your username or email and password and click Login. Click on Company Registration and then +Register a new Company.

3. Click on Apply for A Name if you are yet to apply for a name reservation.

The Companies Act (Act 71 of 2008) states that a non-profit company can apply without a name. You can use the registration number with the company's suffix (South Africa) as a name. If not, you can apply later and do an automated company name change.

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4. If you have applied for a name, click on the type of the company you want to register and then click on the drop down menu to fill in the Enterprise name. Select the relevant name reservation and click next.

5. Fill in the required enterprise information before clicking Next. These details include:

  • Financial Year End
  • Enterprise Email
  • Enterprise Contact Number
  • Authorized shares that will be issued
  • Customer Email (pre-populated)

6. Enter the enterprise location details such as the business, postal, and location address.

Guide on how to register a small business in South Africa
The guide on how to register a small business in South Africa in 2022 requires you to have several documents, like your ID. Photo: @aclegalservices
Source: Instagram

7. Click on +Add under Manage Director to enter the director information, such as their ID number, full names, date of birth, surname, and date of issue of ID document.

8. Once every director is verified, you will receive a confirmation and then click OK.

9. Fill in the contact details for each director, such as their cellphone number, email, and director type status. After that, click Next.

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10. Fill in the location for the director, such as the residential and postal address, and click Next.

11. The director details will display. Click on Edit to correct something or +Add to add the next director. Repeat to complete for every director and then click Next.

12. Click Add to add an auditor, fill in the details, and then click Next to continue.

13. Add the auditor and then complete the Practice Number of the auditor before clicking Next.

14. Click on Shopping Cart to display all the unpaid items. If there is something you missed, click Add Item before clicking Selected Items to pay.

15. Fill in the required details and then Pay. The total payment will be displayed. Click on Proceed to Payment.

16. Authenticate the transaction and click Continue.

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17. A message will pop seeking confirmation and click OK.

18. Click OK after getting the payment confirmation.

How much does it cost to register a small business in South Africa?

The price varies depending on the type of company. The price is roughly R125 for a private company and R475 for a non-profit company registered without members.

Before you begin business operations in South Africa, you must go through the manual on how to register a small business in South Africa. You can complete this application through the New E-services portal, CIPC website, or the bank.

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