What is company registration?
Company registration means that your business is recognized by South African law and enjoys rights that an unregistered business does not. South African companies are registered under the Companies and Intellectual Property Commission (CIPC) that serves to protect businesses and hold them accountable, as well as functioning as a regulatory measure for businesses.
Why do you need to register your company?
There are a lot of benefits to registering your company like the fact that it protects your personal finances. Yours and the company's finances are treated as separate when the business is a registered company. It also allows you to open a separate business account and a separate income TAX number, meaning you file separate TAX returns and pay separate taxes. Your personal finances and the businesses are treated like separate entities.
Registering your company also gives your business legitimacy to potential funders and financial institutions. Securing funding to take your business to the next level is nearly impossible if your business is not registered. Registering your business also reassures your customers and legitimizes it from a consumer standpoint. When your business is registered your customers can trust that you’re a legit business and that you most likely than not, comply with industry standards, so therefore will deliver.
If you're also planning on seeking government funding and certain types of assistance or are looking to transact in the formal sector, you will be required to be registered with CIPC. Registered businesses also have a lower tax rate than individuals. Also note that you still have to register your business with the South African Revenue Services and are liable to pay TAX if your business income is above a specified threshold.
How much does it cost to register your company in South Africa?
With 1-grid.com you pay a once-off R899 for your business registration. Our easy online registration comes complete with a free domain name and business registration with CIPC with minimal effort. You can register your company at your leisure, whenever and wherever.
What do you get when you register a company?
- Company Name Reservation Confirmation
- Company Registration Certificate
- Notice of Incorporation
- CIPC Processing
- CIPC Filing Administration Fees
- Domain Name Registration
- Income Tax Number
If you've had an idea of a company that you want to start in future but have never actioned that idea, registering your future business will be the push you need to get going. When you commit to start, then you’ll be more inclined to continue and push through.