Q. How do I register a Company in South Africa?
Q. How do I register a CC?
A. The Close Corporation (CC) and Private Companies (Pty) Ltd. company formats have been merged since the new Companies Act of 2008 has been introduced. Only “Pty Company Formats” can be registered ever since (read more). If you still have a CC, it could be best if you convert if to a Pty – apply here.
Q. What do I need to register a new Company?
A. There are three requirements:
1. ID / Passport;
2. South African Address (personal and / or business);
3. Ages 18 and older.
Q. How many people are needed to start a Company?
A. Your minimum amount of directors are 1 (one); and the maximum amount of directors are 20 (twenty).
Q. How long does the company registration process take?
A. It all depends on the option and/or package that you select (see current timeframes at CIPC).
Q. How to reserve a Company Name?
A. Start by making sure your company name is not taken already – test it. Then, you can apply to Register a Company and we will do your register your company name as part of the Company Registration process.
Q. If I have a Sole Proprietor and I have a “Trading As” name, can I use that name for my new PTY?
A. The “Trading as” concept has fallen away. According to the current Consumer Act you will not be able to use the term ‘TRADING AS’. You need to have your Trading Name on all documentation, signage and so forth. If you want to register your PTY with your trading as name, we will first apply for a name reservation at CIPC to see if your name is available for registration.
Q. What is the Difference Between a Shelf Company and a PTY Company?
A. Shelf Company is a PTY that has already been registered with the CIPC with one purpose in mind and that is to be sold to persons in need of a Company Registration Number for either a contract or tender application. The shelf companies we have available have no trading history or vat/tax. Included in the price of the shelf company will be the possible amendment of the name and the business address as well as the director details. Register a Shelf Company.
A. PTY Company is a company that still needs to be registered. Where you can choose your company name and submit you directors from scratch. Here you will have to go through the process of the name reservation and final registration which will be dependent on the CIPC and the timeframes may vary depending on the current workload at the CIPC. On average such a process turnaround time is about 15 working days. Register a Company.
Q. Is a Shelf Company better than a PTY Company?
A. It depends on situation. It you have a tender and you need a company quickly, then a Shelf Company can be worth it. Or if you are a Lawyer and you need to set up a Contract quickly. In the Shelf company registration process we need to change the Director (s) and Business Address of the Company. Please note, with a Shelf Company the Amendment Process varies between 15 – 30 working days and you will not be able to open a Business Bank Account until the amendments have been completed at the CIPC. You also have an option to change the Shelf Company Name, this will also be an additional amendment. Apply for a Shelf Company.
Q. I have already reserved my name at CIPC, but I don’t know how to proceed. Can you help?
A. Yes we can assist. Please apply here and indicate next to your Company Name that the Name has already been reserved by stating “9.4 received”. A consultant will be in touch to assist you with the Company registration.
Q. Are there any other fees payable after my Company has been registered?
A. Our fees are all inclusive for the first 12 months after registration date. By South African Law registered Companies must pay an Annual Return fee to the Company Registrar (CIPC) once every 12 months. Read more.
Q. Did you receive my Documentation?
A. When you sign up Online you will receive an email with further information. In this email you will be directed to send your Documentation to a specific email address. The Document department will confirm documents received within 24 hours via email and in certain instances via SMS.
Q. Do I need a code or an extension to my Company name?
(i.e. I want to trade in the building industry, do I need a specific word in my name like “ABC Construction”? as I also want to do other work non related to construction.)
A. What most people would do is to reserve a name with ‘Projects and Services’ or ‘Trading’ at the end, i.e. ‘NJMS Projects and Services’. This way your name does not sound limited when you tender for contracts. If you want to read more about the selection of a great company name, click here. If you are ready to start, apply to register your company.
Q. Which locations in South Africa do PtyCompanyRegistration.co.za’s service cover?
A. We are not bound by location and neither is your registration, as we can register a Pty for you if you are located in South Africa or anywhere in the world where you have internet access. Contact us for more information.
Q. Does the amount of R895 / R795 include everything? What is the process?
- The amount that we require from you is a once off fee and includes a name reservation and Company registration. Please note that our other Company Services (BEE, Tax, etc.) is a separate process at an additional cost after the registration process is complete.
- Start by completing the online application form.
- A consultant will be assigned to represent you at CIPC and who will assist with any and all queries.
- We will request some information and documentation from you – Your proof of payment for the application fee, the Power of Attorney form, a certified ID / Passport for each Director; and also Company and Directors’ Details.
- Then we will register the Company for you and appoint the directors with CIPC’s latest timeframes.
Q. I want to register ‘Holdings’ Company Structure, how does it work?
A. 1. To setup a holdings structure successfully, you need to start at the ‘top’.
- Step 1: Register a New Pty Company as a Holdings company at the ‘top’ – this company you will need to register first ending on the word “Holdings” or “Group”.
- Step 2: Below that company you will then register two or more ‘subsidiary’ companies in which the Holdings Company owns controlling shares.
As each one of these companies needs to be registered at R895 each, you can start with the first one (the Holdings Company) and, as your budget allows, register the companies ‘below’ which will fully or partly be ‘owned’ by the Holdings Company.
When you’re ready, you can start by clicking on this link: Company Registration Option 1.
We will be in contact thereafter and register a Holdings Pty Company for you. If you wish to do register a holdings company and subsidiaries all in one go, please contact us for a quote – we can offer you a discount.
Q. I am a foreigner with no passport. Can I register a Company and open a bank account in South Africa?
A. CIPC only accepts ID / Passport copies. You will also need a valid address in South Africa for your Company. To open a bank account for day-to-day trading in a South African bank you will need to have a South African partner (director in the Company).
Q. Do I get an original hard copy Registration Certificate?
A. CIPC has recently changed their certification system to an entirely online system. All Company Certificates are sent electronically via email. You can print it out and it will be accepted for all your business endeavours in South Africa.
Q. What is an MOI?
A. MOI stand for Memorandum of Incorporation. It is one of the Registration Documents a business owner needs to operate his / her Company officially. You also need your MOI documents in order to open a business bank account at most banks. We register the standard CIPC MOI for our clients at CIPC. For a tailor-made MOI, please find more information here.
Q. Who is referred to as “black” according to the Codes of Good Practice for BEE Certification?
A. The term “black people” is a generic term which means African, Coloured or Indian persons who are natural persons AND:
- are South African citizens by birth or descent; or
- are citizens of the Republic of South Africa by naturalisation before the commencement date of the Constitution of the Republic of South Africa Act of 1993; or
- became citizens of the Republic of South Africa after the commencement date of the Constitution of the Republic of South Africa Act of 1993, but who, but for the Apartheid policy that had been in place prior to that date, would have been entitled to acquire citizenship by naturalisation prior to that date;
Q. If I am not a resident of South Africa, can I qualify for BEE?
A. No, according to the Codes of Good Practice: “Black people” has the meaning defined in the Act qualified as including only natural persons who are citizens of the Republic of South Africa by birth or descent: or are citizens of the republic of South Africa by Naturalisation: Which means the following.
- Occurring before the commencement date for the constitution of the Republic of South Africa Act of 1993; or
- Occurring after the commencement date of the Constitution of the Republic of South Africa Act of 1993, but who, without the Apartheid policy would have qualified for naturalisation before then.
For more information Click Here.
Q. How can I get my own Custom MOI?
A. If you have a registered PTY and a CIPC account you can download it for free. You will first need to register as a client on the CIPC website. Click here to Register. We also doe Custom MOIs, for more information Click Here.
Q. What services do you offer, other than PTY Registrations?
A. Apart from assisting you with the company registration process, we also offer a comprehensive list of other company registration services. To view our Services List Click Here.
Q. What are the requirements to receive a Letter of Good Standing from the Compensation Fund?
A. The following Requirements are necessary:
- You will need a registered company. To register a company Click Here.
- You need to be registered with the Compensation Fund. For more information Click Here.
- The annual fees that are payable at the Compensation Fund, need to be up to date.
Q. My Company has gone into deregistration and I would like to stop the process. What do I do?
A. If CIPC has no recorded Annual Return fees for you Company for the past few years, we can restore your Company by updating the Annual Return fees. We offer Annual Returns as a service. If your company fees were too far in arrears (normally 2 years or more) your Company may have been ‘deregistered’ and thus taken off CIPC’s system and unable to trade. In this case you can apply to re-instate your Company (either Pty or Close Corporation).
Q. How can I validate information of my Company / other Companies with ease?
A. All Companies are registered with CIPC (Companies and Intellectual Property Commission) and can be validated through a Certificate of Confirmation containing all the location / Director’s details of the company.
Q. Why do I need to have Share Certificates created?
A. Banks and numerous other entities require that you have a Share Certificate, even if you have only one Shareholder. Shareholder Certificates (separate function from CIPC) can only be created legally by following a very specific process.
If you want to do this the right way, an attorney or an accountant is the appropriate enterprise to prepare a legal Shares Certificate for your business. We offer this service, please click this link for more information: Share Certificates.
Q. If I have a CC should I keep it or switch to a PTY?
A. You can keep it as it is. Note, there are new requirements that are necessary so that you will need to stay up to day. If you switch to a PTY you will gain access to Shares that you will be able to sell and use for investment. A CC is not recognised if you want to do Imports or Exports. So it is a good idea to covert. Click here for information on how to convert a CC to a PTY.
For more information why a PTY is the best option. Please Click Here.
Q. Do I need an Accounting Officer?
A. You don’t need an accounting officer upon registration, however, we do advise that you use one after registration to take care of you bookkeeping and other financial needs. Jack Liebenberg, based in Gauteng is our in-house accountant who can assist you with all your accounting needs. Please contact us if you need accounting services.
Q. What is a trust?
A. A trust is a separate entity from an individual, totally distinct as one ‘person’ from another, however not unlike a CC or PTY LTD. It is quite unique, in that it is not a creature of statute, but it is the product of a contractual arrangement. The Income Tax Act, deeds registry act, transfer duty act, Value added Tax Act and the Insolvency act afford a trust legal personality. We can contrast a Trust with a CC or a Pty Ltd which are entities created by completing and registering certain statutory forms with the Registrar of Companies which then registers the CC or Pty Ltd and it comes into being. A Trust is created by contract which is a Legal document, commonly referred to as a Trust Deed. The following points are important to remember, a Trust while not legally being referred to as a person is separate from you, a trust is not owned by any one, and a trust never dies or terminates unless it is terminated by agreement or it is sequestrated if it is unable to pay its debts. The latter qualities make a Trust the only entity which will afford total asset protection and estate duty savings along with a myriad of other benefits. There are various types of trusts, namely; Testamentary trusts, Vesting or Bewind Trusts, Special Trusts and Discretionary Trusts, the Discretionary trusts is more applicable than the other form of trusts are of no benefit to us as they do not afford the necessary asset protection and estate duty savings and Capital tax saving benefits that discretionary trusts are able to offer. Apply to register a trust.
Q. I want to register a Co-Operative. Can you help me?
A. Yes we can assist you with a Co-Operative registration. Requirements:
- Two or more Directors.
- All the Directors must have a valid ID book and Physical Address in South Africa.
- None of the members may have been declared insolvent in South Africa.
Apply to register a Co-Op.
Q. How are shares allocated to the different shareholders of the Company?
A. Shares are allocated through a share certificate. We can assist you with a share certificate for your Company.
Apply for a share certificate.
Q. Do I have to register my Pty for Income Tax / Tax Clearance / VAT?
A. Yes, after the registration process is complete, CIPC should automatically register your income tax number. If CIPC fails to register your Company for income tax due to system errors, you will have to go to SARS to register your Company’s income tax number. After you have a number, you need to ‘verify’ your Tax Registration. We assist with your “Tax Registration Verification” as well as a Tax Clearance Certificate at SARS. Read more / apply here.
VAT registration can only be done after the Pty Company has proof of R50 000 or more in sales (to be shown with invoice or contract). Once your Pty reaches these requirements for VAT our SARS department can register your VAT number.
Q. I have paid CIPC for Company Related services, but I am struggling with them – can PtyCompanyRegistration.co.za to continue the process?
A. We would suggest that you do the following:
- Apply to register a company through us so long: Online application form.
- Request a refund at CIPC.
Below follows the required steps to request a refund at CIPC:
Attach all the listed documents to an email which should be sent to firstname.lastname@example.org
- On your Company Letterhead write your request for a refund, signed by all directors. Indicate the amount or balance to be refunded as well as your full banking details.
- Certified ID copy of Directors.
- Proof of Payment.
- Copy of Bank Statement or Confirmation from the Bank to proof Banking Details.
The turnaround time for this application to be processed is normally three (3) working days, depending on the volume received by CIPC.
Should you not have a response from CIPC within the three working days, you may lodge a “1st Level Query resolution” to one of the following people at CIPC:
- DIPUO MFETE – email@example.com
- PREMISHA SOOKRAJ – firstname.lastname@example.org
If your query is not resolved within a further two working days, you may lodge a “last level of query resolution” to:
- RENIER DU TOIT – email@example.com
Please do not skip any of the steps or go to the next level before the said time frames, as it would be of great disturbance to the CIPC consultant and will not win you any time in doing so.
Q. Is Turnover Tax better for my company than Income Tax.
A. This is a great alternative if you have a Company that earns less than R1 Million a year. It is aimed at.
- Individuals (sole proprietors)
- Close Corporations
You will need to do a quick test on the SARS website to see if you qualify. There are two options. Quick test for Individuals or Quick test for Companies. If you answer NO on any of the questions, then you will not qualify for Turnover Tax. Follow the links below:
For more information Click Here
Q. Do I have to hand in an audited statement for my CC / PTY?
A. If you have a CC then you do not have to hand in an audited statement. If you have a PTY Company under the Old Company’s Act you will need to hand in an audited statement. If your PTY was registered under the 2008 Act then you do not have to.
Q. What are the Timeframes?
A. Timeframes are the length of time it takes for a Service to be completed. We are dependent on the CIPC, you can view our current timeframes on our All Services page. Click Here to view our current timeframes.
Q. We want to register a Joint Venture, can you assist?
A. Firstly you would have to register a new Pty with yourself as a director. Thereafter your new Company and the other company would have to set up a joint venture agreement. If you are ready to start apply to register your company. One of our consultants will be in contact with you to guide you through the process. After which you can set up a joint venture agreement preferably by a lawyer. A written agreement should cover: the structure of the joint venture, i.e. whether it will be a separate business in its own right, the objectives of the joint venture, the financial contributions you will each make, whether you will transfer any assets or employees to the joint venture, ownership of intellectual property created by the joint venture, management and control, i.e. Respective responsibilities and processes to be followed, how liabilities, profits and losses are shared, how any disputes between the partners will be resolved, an exit strategy, see the page in this guide on ending a joint venture.
Q. Can Companies still use Trading As names?
A. In terms of the new Companies Act of 2008, Companies may no longer use ‘Trading As’ names. You have to trade under the name that has been approved by CIPC. Contact us for assistance. Test your name using the name testing process.
Q. Do I need to keep certain documents?
A. Every Pty Company needs to keep accurate accounting records, which include: invoices, cashbooks, ledgers, bank statements, journals, cheque books, deposit slips, stock records, asset register and any other form of record keeping of income, expenses, assets or liabilities. Please contact your bookkeeper for more information about this.
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