Are you an aspiring businessperson or an entrepreneur already in the market and wish to take some steps further to start and run a company in South Africa? This article will guide you on how to register a company in South Africa. It is possible to register a new company through online agencies or by doing everything yourself, which is somehow tiresome and time-consuming.
Online agencies simplify the process of registering the company as they have experienced experts and a high customer support system. Also, they are familiar with regulatory requirements by the South African government. For instance, they are experienced in working with the Companies and Intellectual Property Commission which is an agency of the Department of Trade and Industry in South Africa.
On the other hand, trying to register a company in South Africa by yourself means doing everything yourself. This process is considered somehow ineffective because first, an individual wishing to register a company may not be familiar with the regulatory requirements by the South African government. Secondly, the individual may not have leading experience in working with the Companies and Intellectual Property Commission which may further complicate the process.
Types of companies you can register in South Africa
The following is the list of the types of companies that can be registered in South Africa:
- Private company – you should register this type of company if you need a franchise business; which is a business that is established and authorized to sell or distribute a company’s goods or offer services in a particular place.
- Non-profit company – this type of company can be registered by people who want to run a non-profit organization such as a church. It is also the most suitable for people wishing to register a charity organization.
- Personal Liability Company – this type of company is registered as a group of professionals such as doctors or lawyers.
- External/Foreign Companies – these companies can be registered by individuals who run international companies and may wish to set up a branch in South Africa.
- Proprietary Limited company. – this is basically limited company with more restrictions than a public company.
Requirements and Cost of Registering a Company in South Africa
Some of the requirements needed to register a company in South Africa include:
- South African national identity card (ID) for resident individuals or a passport if you are a foreigner.
- An individual is required to have attained the age of 18 years.
- Finally, a South African address for your business or company.
The cost of registering a company is dependent on the type. It varies between R125 and R475. The former represents the cost of registering a private company while the latter represents the cost of registering a non-profit organization that still has no members. However, the cost of registering the company through an online agency is around R980 (980 Rands), with the extra being a facilitation fee.
The most common type of company in South Africa is the Proprietary Limited Company (Pty Ltd) and the fastest, reliable and most efficient way to register this type of company is through seeking for the assistance of agencies dealing in company registration.