Company registration is the next step in making sure that you give your dream a solid focus and the ultimate direction. It’s time to register your business when you are looking to take you side hustle or part-time gig to greater heights. There are great benefits and opportunities linked to a company registration in terms of funding and growing your business. Let’s explore those benefits as well as what it takes to get your business registered in South Africa.
What is company registration?
When you launched out to start selling your product or offer your services, you more than likely did so in your personal capacity. You used your own resources and personal banking account. Legally you were operating as a personal entity and personal liability was attached. Operating in your personal capacity means you assume all the risk. This ultimately has a financial impact but also plays a part in branding your products and access to funding. A registered company is recognised as such by South African law. Registering your company means you enjoy rights, benefits and privileges that an unregistered business cannot enjoy. The registered business becomes the legal entity responsible for finances, tax, resources, and all associated risk.
Why do you need to register your company?
We’ve already mentioned risk, funding and branding. Keep things separate so you can give it the focus it deserves. Create a separate legal entity to run your business by getting your company registered. A registered business allows you to create a separate business banking account. You will receive a separate income TAX number as well, another great way to keep your personal matters outside of your business.
All funding providers will require that you have a registered business entity. Banks and credit providers largely offer two credit options, business and personal. Both avenues are tailored to the needs of the entity. You can be guaranteed that no negotiations will be entered into if you are in need of business loan without having a business registered. Lenders and investors are looking to finance businesses and not personal lifestyles.
There have mostly only been horror cases of a small business owner taking a product to market only to be ripped off by a bigger player. Your products and services will naturally have an identity, a product name or something that uniquely distinguishes you from everyone else in your market. Registering your business gives you measure of identity protection. You can now put your name on your product without someone else cloning your products with your name on it. Note that to completely engage with brand name protection you need to explore trademarks and copyright protection.
Customers trust registered businesses. When you register a business it means that you are serious about trading and you inspire confidence to your market.
Where do you register your small business?
You business must be registered with Companies and Intellectual Property Commission. There are services which facilitate this process which will allow you to complete your registration online with minimum fuss. At 1-grid.com you can now register your business name and domain name at the same time. i’s important to check if your business name and domain name is available. You would not want to register the one with the other being taken already.
What do you get when making your business official?
For a once-off fee your package includes:
- Company Name Reservation Confirmation
- Company Registration Certificate
- Notice of Incorporation
- CIPC Processing
- CIPC Filing Administration Fees
- Domain Name Registration
- Income Tax Number