How to Start a Company in South Africa

Starting a company in South Africa is easy.

The South African economy is one of Africa's strongest and starting a company is straightforward and does not require a lawyer. In fact, once the entrepreneur registers the company for incorporation with the Registrar of Companies, few additional steps are required for completion.

Instructions

1. Select a company name and determine if it is available. To do this, visit the website of the Companies and Intellectual Properties Office (CIPRO) and fill out the required Application For Name, or CK7, form. As of June 2010, the cost is 50 ZAR ($6.40 USD) and the waiting period is approximately three to five days. If for some reason you cannot use the CIPRO website, simply visit the CIPRO office in Pretoria. Unfortunately, submitting the Application For Name form in person will result in a longer waiting period. However, once the name is approved, it will be automatically reserved for two months and no one else can use the name during that time. The name reservation can be extended for one month at a cost of 20 ZAR ($2.56 USD).

2. Submit a completed Certificate to Commence Business, or CM46, form to CIPRO. This form is required for a company to begin raising capital or trade shares. In addition to Form CM46 include the following completed documents: a CIPRO letter indicating that the company name was approved, a copy of the Certificate of Incorporation, a copy of the Memorandum and one copy of the Articles of Association, which must include a signature page. A fee must also be included. The total cost will vary depending on the authorized share capital of the company. Additionally, the following forms must be submitted: Form CM22, CM27, CM29, CM31, CM46 and CM49. All forms are available at the CIPRO website. Once all required forms, documents and fees are submitted, CIPRO will take five to seven days to complete incorporation.

3. Register the company with the South African Revenue Service (SARS) by submitting the appropriate form. The form will depend on the type of company but all forms are available at the SARS website. The company must then register as an employer using the EMP101e Form, which is also available at the SARS website. For VAT (Value Added Taxes) purposes, the company must submit the name of its public officer to SARS and this person must be a resident of South Africa. The tax registration process will take 12 days.

4. Register with the South African Department of Labour for unemployment insurance purposes. To do this, submit Forms U18 and U19 and wait four days for approval. The forms are available at the Department of Labour website. Once approved, the department will issue a reference number to the company and the company can begin operating.

5. Create a company bank account at a bank of your choice. To do this, submit names of the company's directors and original copies of the company's incorporation documents. The forms will require listing of the company's name, contact information and income tax number. No fee is charged to open an account and the process will typically take only one to two days.

References

• Doing Business: Starting a Business in South Africa
• Companies and Intellectual Property Registration Office: Gateway to Formal Economic Participation
• South African Department of Labour: Documents
• South Africa Revenue Services: Small Business
• South African Department of Labour: Form COID - W.As.2 - Registration of an Employer with the Compensation Fund