Registering a company in South Africa is done through the Companies and Intellectual Property Commission (CIPC). The most common business type is a Private Company (Pty) Ltd.
Business Structure Options
| Type | Best For | Liability |
|---|---|---|
| Private Company (Pty) Ltd | Most businesses | Limited to investment |
| Close Corporation (CC) | Legacy only (no new registrations) | Limited |
| Sole Proprietor | Freelancers, small traders | Unlimited personal |
| Partnership | Professional practices | Unlimited personal |
| Non-Profit Company (NPC) | Charities, NGOs | Limited |
Close Corporations
You cannot register a new CC since 2011, but existing CCs can continue operating. Many businesses choose to convert CCs to Pty Ltd companies.
Requirements for Pty Ltd
To register a private company, you need:
Directors
- Minimum 1 director
- Must be natural person (not a company)
- Over 18 years old
- Not disqualified by law
- South African ID or passport
Registered Address
- Physical address in South Africa
- Can be your business or home address
- This is where official documents will be sent
Company Name
- Must be unique (check on CIPC website)
- Cannot be misleading
- Must include “Proprietary Limited” or “Pty Ltd”
- Reserve name before registration (optional but recommended)
Registration Steps
Step 1: Create CIPC Account
Visit eservices.cipc.co.za and register for an account using your South African ID number or passport.
Step 2: Name Reservation (Optional)
- Reserve your company name for R50
- Valid for 6 months
- Check availability first using free search
Step 3: Complete Registration Form
Online form requires:
- Company name (reserved or new)
- Director details (ID, address, contact)
- Registered address
- Nature of business (SIC code)
- Financial year end
Step 4: Pay Registration Fee
- Standard registration: R175
- Name reservation: R50 (if applicable)
- Payment via credit card, EFT, or CIPC customer code
Step 5: Receive Documents
Once approved (usually 1-3 business days):
- Registration Certificate
- Memorandum of Incorporation (MOI)
- Company registration number
Fast-track registration
CIPC offers same-day registration for an additional fee if you need urgent processing.
Costs Summary
| Item | Cost |
|---|---|
| Name reservation | R50 |
| Company registration | R175 |
| Amendment to MOI | R100 |
| Annual return | R100-R4,500 (based on turnover) |
After Registration
Once registered, you must:
Within 30 Days
- Open a business bank account
- Register for tax (SARS)
- Register for UIF (if employing staff)
- Register for COIDA (if employing staff)
Annually
- File Annual Return with CIPC
- Submit tax returns to SARS
- Maintain statutory records
Annual returns are critical
Failure to file annual returns can result in deregistration. Set a reminder for your financial year end.
Tax Registration
After company registration, register with SARS for:
- Income Tax
- VAT (if turnover exceeds R1 million)
- PAYE (if employing staff)
- UIF and SDL
Visit SARS eFiling to register.
Common Questions
How long does registration take?
Typically 1-3 business days for straightforward applications. Complex cases or corrections may take longer.
Can a foreigner register a company?
Yes, but you need:
- Valid passport
- South African address
- Local director (recommended but not required)
- Work permit if you’ll be working in SA
Do I need a company secretary?
Not legally required for small Pty Ltd companies. Recommended for larger companies.
What’s the difference between Pty Ltd and Ltd?
- Pty Ltd (Private Company): Shares cannot be offered to the public
- Ltd (Public Company): Can offer shares publicly, stricter requirements