When we think of starting a business, we tend to focus on choosing a catchy business name, creating a website and registering a domain. Whilst these are vital steps in the business formation process, there is one more step that needs to be completed: business registration.  

There are benefits to registering your business in South Africa. These benefits apply whether you are earning a profit or not. Not even the size of your organisation matters. These benefits include brand protection, tax benefits, financial aid, and business compliance. 

Small businesses in South Africa might enjoy business development and support services. As a result, the majority of residents are starting businesses to address various market gaps. Yet, reading the handbook on how to register a small business in South Africa is essential. Continue reading to learn what the guidebook expects of these business owners. 

Who needs to register a business? 

Businesses who want to do business with the government or the formal sector, or who want to receive certain sorts of government assistance, must register with the CIPC. There may also be fiscal advantages to registering for these enterprises, as registered businesses pay a lower tax rate than individuals. Even if you are not a member of the CIPC, you must register with the South African Revenue Services and pay tax if your turnover exceeds the specified amount. 

Where to register your business? 

You can register your business online through the Companies and Intellectual Property Commission (CIPC) or through Bizportal.gov.za, a CIPC-created platform that provides company registration and related services. 

A bank, such as Nedbank or First National Bank, can also help you register your business. 

Another option for registering your company is to outsource the administration to companies that specialize in company registration and related services. Many of them offer packages that include company registration as well as related services like SARS counselling, labour registrations, CIDB registration and upgrades, tax returns/compliance, and accounting services. 

Why you should register your business 

If the business is registered, you will not be held liable for its responsibilities. If your company isn’t registered, you’re responsible for all of its debts and other obligations. This means you could lose your personal belongings, such as your car, home, and other valuables. When a single consumer sues your company, your personal assets are automatically put in danger. 

When you have a registered business, it is considerably easier to raise funds. If you run an unregistered business, investors will not take you seriously, and regulating an unregistered business is far more difficult. 

People are more likely to trust registered businesses than unregistered businesses since it demonstrates that your company is not a fraud or a fly-by-night operation. People will have more faith in you; in fact, some people are so doubtful that they would ask for your business name merely to see if it is registered. 

A final thought on business registration 

As outlined above, there are many benefits to registering a business. It is important to stay informed of the current regulations and requirements. Now that you have a better understanding of business registration, read our blog post on the steps you need to take after you have registered your business.