Are you starting a Construction Company in South Africa? We can Register a Construction Company for you to apply for Construction Tenders and Contracts. We can do the FULL Construction Company Registration according to CIPC, SARS, CIDB and NHBRC’s Standards. We also guarantee the quickest possible timefame. Register below or contact us toll free on 0800 007 269.
There are thousands of construction companies in South Africa. Only a few comply with the strong construction regulations of the CIPC, SARS, CIDB and NHBRC. The effect of this is that only a small number of these construction companies can compete for the larger contracts which are available at Government and Corporate institutions.
We have 2 options available to start a ‘Registered Construction Company’:
Option 1: Register a Construction Company first and apply for additional Construction related services later.
Option 2: Register a Construction Package (scroll down to application form).
Construction Tenders / Contracts: The minimum services required to be able to apply for Tenders or Contracts follows the services included in the Construction Package as per below. The CIDB and The National Home Builders Registration Council (NHBRC) require that you have numerous facets and compliance certificates in place when working on construction projects – and we can assist.
Note: We have conveniently setup packages which include these services and more, specifically for our clients who want to start a Construction Company in South Africa. This online process now makes it quick and easy for entrepreneurs to start-up their companies.
Additional Construction Services we can assist with:
For more information on services that are linked to this industry see below.
Your guide on how to start your own Construction Company in South Africa
In this post, we’ll show you how to register a Construction Company in South Africa. We’ll show you exactly what documents you need to firstly register a Construction Company, and secondly, to comply with all the South African Tender en Contract requirements. We’ll also show you where to get all the documents you need and what the fastest way of doing so would be.
This post is for you if you want to start a Construction Company or if you’re thinking about getting more jobs for your existing building business. We know that knowing what documentation you need to start your business and win Tenders and Contracts in South Africa can be really confusing. That’s why we’re laying out all the vital documentation you need in this post. No matter how far you are in the process to register a Construction Company in South Africa, this post should help you to get everything you still need.
Our experts have been helping South African entrepreneurs to start their Construction Companies for years. That’s why we asked our experts to break down everything you will need to register a Construction Company and to apply for Tenders with your Construction Company.
Compliance documentation for Construction Companies can essentially be divided into two sections:
- General Company Compliance Documentation
- Construction and Tender Specific Documentation
You first need to sort out your general Company compliance like Pty Registration (or whatever other company structure you prefer), SARS registration and Employer registering so you can legally trade and employ staff.
Next, you can move on to the Construction-specific Compliance for companies who are interested in applying for Tenders and Contracts – both private and governmental.
Breaking down compliance into two sections makes it easier to understand what you need to start a successful Construction Company in South Africa and why you need it.
The vital documentation you need to get your South African Construction Company Compliant
Simply scroll down to the section you’re interested in.
Section 1: General Company Compliance
Employer Tax Registration
Section 2: Tender and Construction-specific Compliance
COID Registration and Letter of Good Standing
B-BBEE Affidavit or Certificate
CIDB Registration for Contractors
Please note that this summarizes the most vital Company Documentation most Construction Companies in South Africa needs; it’s by no means a fixed list. We’re just summarizing the documents most South African Construction Company’s need firstly to trade legally and secondly to be eligible to win bigger Tenders and Contracts.
Section 1: General Construction Company Compliance
Here are the first five most important documents you should get in order to ensure your South African construction business is complaint with regulations:
Why do I have to register my business as a Company?
If you’re starting a new company or if you have an existing business that you’d like to take to a new level, it’s time to decide whether you’d like to officially register your business to make sure you, as the owner, is safe.
What I mean by safe is the following: if you have a business, but you haven’t registered it specifically as a Pty Company, for example, you have to submit your tax to SARS alongside your personal tax. This implies that your earnings and your debt are linked to your business and vice versa. If your company gets into financial trouble, you get into financial trouble, because you’re still considered one entity.
If you register a company, the new company will become a separate legal entity from yourself (your personal capacity). In most cases you will be protected should your company gets in financial trouble.
There are various Company Structures (each with their own set of legal, taxation rules and asset and debt liability), however, the most common structure is a Pty Company.
How do I register my Construction business?
All companies have to be registered at the CIPC – regardless of what industry you’re in.
You can either go into the CIPC offices to register your construction company (you will simply be asked to register a general company for e.g. a Pty) or use the CIPC’s online portal (https://eservices.cipc.co.za/). It might be easier to ask your accountant if you have one. They can assist you too.
However, the fastest and simplest way to do it is by calling our Toll-Free number. We have over 30 Company Registration experts who will help you register your company at the CIPC in under a week.
Expert Tip: Call 0800 007 269 (Toll-Free) and have one of our Company Registration experts help you get your Construction Company registered at the CIPC in record-time and with minimal effort from your side.
Expert Tip 2: Here’s a company registration guide we created (with step-by-step instructions): https://www.ptycompanyregistration.co.za/company-registration-guide/
Employer Tax Registration
Why do I have to register as an Employer at the SARS office?
Almost every South African has to pay tax according to their income unless they earn very little – then SARS will dub them exempt. This means that every employee has to be registered at SARS; SARS will determine whether they are exempt.
That means as an Employer, you have to register the salaries you pay in order for SARS to determine the Tax of your employees. You, as the employer, will withhold whatever they owe SARS and pay it directly to SARS. This is called Pay as you Earn (PAYE).
Whatever tax deductibles your employees have they will communicate to you to subtract from their payments due to SARS or they can simply claim it back directly from SARS. Most employers prefer not handling these deductibles when they calculate what Tax to withhold relating to their employees’ salaries, however either way will suffice.
The most important thing to remember is that you HAVE to register yourself as an employer stating all your employees.
What is SDL and UIF and why do I have to register for it?
When you register, SARS might also ask you to register for something called the Unemployment Insurance Fund (the UIF) and perhaps even the Skills Level Development (SDL).
Whether you have to contribute to the SDL is determined by various factors (like for instance whether you expect your total salary expense to be more than R500 000 over the next 12 months). This is simply a fund that allows your employees to pursue further training. However, you will most likely have to register for the UIF unless your employee works for you for less than 24hours a month.
The UIF means you’ll be contributing an extremely small amount, every month, as a form of insurance that safeguards your employees against losing their jobs. If they do lose their jobs this fund allows for temporary financial relief.
How do I register as an Employer at the SARS office?
You have to register yourself as an employer at SARS.
You can also refer to this SARS page > http://www.sars.gov.za/TaxTypes/PAYE/Pages/Registering-for-PAYE.aspx
You need to register for UIF at the UIF office.
Expert tip: the easiest way to register both at SARS and the UIF as an employer is calling our Toll-Free number 0800 007 269. Here a SARS and UIF expert will assist you with step-by-step assistance.
Section 2: Tender and Construction-specific Compliance
The most popular documents that are required for Construction Tenders and Contracts include:
COID Registration and Letter of Good Standing
What is a Letter of Good Standing and how can I get one?
If you want to apply for Tenders and Contracts, you will most likely have to submit a Letter of Good Standing. The only way to get a Letter of Good Standing is making sure you are “in good standing” with COID, also known as the Workman’s Compensation Fund.
The only way to be in good standing and have no debt with the Workman’s Compensation Fund is ensuring you are firstly registered at the Fund and secondly, up-to-date with all your due payments.
If you’re not sure what the Workman’s Compensation Fund is, I’ll briefly describe it and also why you have to contribute to the fund (the contribution is really a tiny, insignificant amount determined as a small percentage of your employee’s salary).
The Workman’s Compensation is a form of insurance provided to employees, or their dependents, in the case of any work-related diseases, injuries or deaths.
That means, you as the employer, offers a tiny contribution on an annual basis, and the Fund will compensate your employee if they are ever harmed at work. They will even compensate the dependents of your employee if they die or if they are permanently impaired.
In short, the Fund safeguards you from massive medical bills and compensation and it also ensures your employees get financial aid if they are harmed at work.
Please note this really is an oversimplification and the Commissioner of the Fund first has to approve a claim and determines how big or small the compensation will be based on your employee’s incident and his or her income prior to the incident.
You can read more about Workman’s Compensation in South Africa right here: > https://www.ptycompanyregistration.co.za/compensation-fund/
Expert tip: Click here to get assistance directly from our COID and Workman’s Compensation Fund Experts > https://www.ptycompanyregistration.co.za/compensation-fund/
Do I have to register for VAT?
The most important thing to note about VAT Registration is that it’s mandatory if your company has a turnover or sale-total of more than R1 million in 12 months.
Before that, it’s voluntary. There’s also a minimum cut-off for voluntary registration, so if you have a completely new business, you might not be eligible for voluntary registration. If you’re thinking about registering for VAT, the most significant advantage is the fact that other VAT-registered companies (who are usually big companies) are more inclined to work with you.
Where do I register for VAT?
You have to register for VAT (you can read more about that right here > http://www.sars.gov.za/ClientSegments/Businesses/My-Bus-and-Tax/Pages/Register-and-Deregister-for-VAT.aspx ) at SARS, however, our SARS experts can assist you from the comfort of your home.
The easiest way to register for VAT is to simply call our Toll-Free number: 0800 007 269
B-BBEE Affidavit or BEE Certificate
Do I need a B-BBEE Affidavit or a BEE Certificate?
Does your business have an annual turnover of more than R10 million? According to South African law, that means you do need an official B-BBEE Certificate.
If you’re like the majority of South African businesses your annual turnover is under R10 million. That means you just need a BEE Affidavit.
A BEE Affidavit is simply a form that states your simplified level of B-BBEE (you can find a form on SARS site). All you have to do is fill out that form and have it signed by a Commissioner of Oath.
Where do I get a B-BBEE Affidavit or a B-BBEE Certificate?
You can also find out more about where to get an official B-BBEE from the CIPC right here: http://www.cipc.co.za/index.php/manage-your-business/manage-your-company/bbbee/
CIDB Registration for Contractors
Do I have to register at the CIDB (Construction Industry Development Board)?
The short answer is yes. CIDB Registration is a must if you want to function as a Construction Company in South Africa, and apply for Construction Tenders and Contracts. South African law (Act 38 of 2000) says so.
There are only two reasons why skipping CIDB registration would be an option. The first is if you’re just building on your own home and you have no interest in applying for Tenders or work in the public construction sector.
The second is if you’re only interested in providing specific services or supplies to other Construction companies, who actually do the hard work. An example is providing the bricks or the human resources for a Construction Company and only doing that.
The CIDB makes sure all Construction Companies in South Africa adhere to a specific national standard and a specific Code of Conduct. Without it, any unqualified builder could erect unsafe structures in any way possible.
Where can I register my construction company at the CIDB?
Here’s a helpful link to a CIDB application form: https://www.westerncape.gov.za/Text/2005/1/formcrs_p1.pdf
Expert tip: Rather than filling out that form by yourself, you can just give us a call for step-by-step instructions to ensure your CIDB registration is accepted and processed as soon as possible. Here’s the Toll-Free number to over 30 CIDB experts: 0800 007 269.
Do I have to register my Construction Company at the NHBRC?
You don’t have to register your construction company at the NHBRC (National Home Builders Registration Commission). However, it’s strongly advised that you do.
This organization serves as a large trusted database of registered construction companies. That means clients and Companies use this site actively to find good Construction Companies in South Africa.
Another undeniable reason for NHBRC Registration is the fact that it’s almost always required for Construction Contracts and Tenders and even building loan applications.
Where can I register for the NHBRC?
Have a look at this helpful link: https://www.ptycompanyregistration.co.za/nhbrc-registration/ or connect with one of our various experts right here: https://www.ptycompanyregistration.co.za/book-free-consultation-session-now/
Is it good to register at the MBSA as a South African Construction Company?
The MBSA (Master Builders South Africa) is a voluntary organization just like the NHBRC. As with the NHBRC, it’s a good idea to register – even if it is voluntary.
MBSA Registration isn’t as often a prerequisite for Construction Tenders and Contracts, but it still serves its value as being a credible associate of trusted Construction Companies.
With business being tight across South Africa, making sure you’re perceived as a trustworthy Construction Company will always serve you well.
You can find out more about the MBSA right here: https://www.masterbuilders.org.za/building-contractor/membership-benefits