How to start a construction company in South Africa

How to start a construction company in South Africa

Starting your own business may seem daunting, but it can open new doors and provide newfound financial stability and freedom once you have built an established company. A construction company offers a service that is always required, with ongoing employment opportunities. Here, we discuss how to start a construction company in South Africa.

starting a construction company with no experience PDF
Opening your own business may offer more financial stability once established. Photo: Mikael Vaisanen
Source: Getty Images


Although starting your business may seem intimating and complicated, the process can be easily streamlined if you know where to start and what the process entails, including the relevant documents and verifications.

Here, we dissect everything you need to know about how to start a construction company, including how to start a construction company with no experience, how to register a construction company and how much it costs to start a construction company in South Africa.

How to start a construction company in South Africa with no experience?

Starting a construction company with no experience is easier than you may think. The easiest way to approach the process is by doing sufficient market research. Research precisely what documents you need, how to process them and how to navigate funding if required.

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Joining any relevant associations to help network will also offer you further information on the process and help if needed.

how to start a construction company in South Africa PDF
There are specific steps you need to take to register your business. Photo: Paul Bradbury
Source: Getty Images

What do you need to start a construction company in South Africa?

Once you have done the necessary market research, you should first register your company. You need to register it at the Companies And Intellectual Property Commission (CIPC), which will provide you with a company registration number and relevant documents for compliance.

Once that is done, you must register the company for tax with SARS to get an income tax number and tax clearance certificate. Following this, setting up relevant B-BBEE documentation can greatly help your company. You must also register with the CIDB (Construction Industry Development Board) to work in the public sector/apply for tenders.

You can then obtain a Letter of Good Standing, which shows you are registered with the Workman’s Compensation Fund and also shows financial responsibility. You must register with the Department of Labour for COIDA (Compensation for the Occupational Injuries and Diseases Act) to do this.

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Finally, you need to register with the National Home Builders Registration Council (NHBRC) to verify that your organisation complies with all of the necessary guidelines and rules to provide services safely for all involved.

What qualifications do you need to start a construction company?

Knowing what qualifications you need to start a construction company in the country may help you feel more at ease. Luckily, you do not need to have any specific degrees or diplomas to begin your own company as an individual.

Still, it does help when discussing why your company is worth working with and investing in through a business plan regarding any possible business and marketing qualifications. As mentioned earlier, you would need to have the relevant legal documentation and certifications as a company before you can operate and obtain tenders.

What documents are needed to start a construction company?
Once you have registered the business, you can lobby for investors. Photo: Sornranison Prakittrakoon
Source: Getty Images

What certificates are needed for a construction company?

To obtain an official construction certificate in South Africa that shows your company is fully qualified and legally equipped to take on tenders, these are the documents you need:

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  • COID registration
  • An MBSA membership
  • VAT registration for your company
  • CIDB (Construction Industry Development Board) registration
  • A Letter of Good Standing
  • B-BBEE affidavit or BEE certificate
  • A tax clearance certificate
  • NHBRC registration

How much money is enough to start a construction company?

It is estimated that you need a few million Rands, at least, to begin a functional, well-equipped construction company that can provide adequate services. This may be a hefty cost for many individuals. Therefore, knowing how to start a construction company with no money in South Africa may be more helpful.

If you are short on funds, you could turn to investors or potential stakeholders to assist in growing your company. Creating a business plan for a construction company in South Africa will show potential investors how they would benefit from the joint venture professionally.

How to get construction projects in South Africa?

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Once you have established a construction company, you may wonder how to implement the next natural step of obtaining clients. After you have registered with the CIDB, they provide business owners with the added benefit of any construction tenders available in your area, which is immensely helpful.

However, keep an eye on any tender advertisements and specifically research any organisations that use construction companies, especially if your niche services can be of use to them.

Knowing how to start a construction company in South Africa helps you streamline the process, saving you time and effort. Thanks to all of the available information about the process online, starting your own construction business has never been easier.

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Source: Briefly News

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