How to register a company in South Africa

Registering a private company (Pty Ltd) with CIPC is cheaper and faster than most people expect, and needs no certified documents at all. Here is the full process in plain English: what you are asked for, what it costs, what you can get free at the same time, and the two deadlines that start the day you register.

Why register at all

You can trade legally as a sole proprietor without registering anything. The reason people register a company anyway comes down to four things.

The debts stop being yours. A registered company is a separate legal person. If it owes money, the company owes it. As a sole proprietor there is no line between the business and your house.
Most real work asks for one. Tenders, the Central Supplier Database, corporate suppliers and many contracts will not deal with an unregistered person. You cannot get a company bank account, a B-BBEE certificate or a CIPC-based tax clearance without one.
It is cheap. R175 to CIPC, done in about a day. This is one of the lowest barriers of any country.
It survives you. A company can be sold, inherited, or take on partners. A sole proprietorship cannot.

The trade-off is that a company brings duties a sole proprietorship does not: annual returns every year, beneficial ownership filings, and separate company tax returns. Those are covered further down, and they are the ones people forget about until something is blocked.

Pty Ltd, NPC or Inc: which one

Almost every small business registers one of three structures. Pick the one that matches what you are actually doing, not the fanciest-sounding name.

Private company (Pty) LtdThe standard for-profit structure. One director and one shareholder is enough, and they can be the same person. Profits can be paid out to shareholders. Company tax is 27%. This is the right answer for almost every trading business.
Non-profit company (NPC)For organisations that exist for a public benefit, not to make money for their members. Needs a minimum of three directors, has members instead of shareholders, and cannot distribute profit. Can apply to SARS for tax-exempt status once registered. See our PBO and section 18A guide if you are going this route for donations.
Personal liability company (Inc)For regulated professions, mainly attorneys, auditors and similar, where the professional body requires directors to be personally liable for the company's debts. If you do not already know your profession requires this, you almost certainly want a Pty Ltd instead.

Where companies get registered

All South African companies are registered with the Companies and Intellectual Property Commission (CIPC). You can register directly on CIPC eServices or through BizPortal, CIPC's simplified platform. Banks and third-party agents also offer registration, usually bundled with other services.

The standard route for a small business is a private company, a Pty Ltd. It gives you a separate legal entity, so business debts belong to the company rather than to you personally, and it is the structure most clients, suppliers and tender boards expect to deal with.

Step 1: reserve a name (optional but recommended)

A name reservation costs R50 at CIPC and lets you propose up to four names in order of preference. CIPC checks each against existing companies and reserved names, and the first acceptable one is held for you for six months.

You can skip this step and register the company with its enterprise number as the name (for example "2026/123456/07"), then add a proper name later by amendment. That works, but most owners want the name from day one, so reserve first. If you only want the reservation handled, we do it for R250 including the CIPC fee.

Step 2: register the company

Registration with a standard memorandum of incorporation costs R125 at CIPC without a name, or R175 including a name if you do the whole thing in one go on BizPortal. CIPC advertises that route as one day.

You do not need certified copies. BizPortal is completely paperless and states plainly that no documentation is required. Identity is confirmed against Home Affairs records using the identity numbers you type in. If someone is charging you to certify documents for a straightforward company registration, they are charging you for something CIPC does not ask for.

If you would rather not deal with CIPC forms and follow-ups, ProperSA registers the company for a flat R790, name reservation and CIPC fees included.

What you will be asked for

The whole application is typed in. This is the full list.

The identity number of every director and incorporator. Checked against Home Affairs. A director must be a natural person, at least 18, and not disqualified.
Their names, contact numbers and email addresses. Get these right: CIPC uses them for annual return reminders and deregistration warnings for the life of the company, and a wrong address means the warnings never reach you.
Up to four proposed names, in order of preference, if you are reserving one. CIPC works down the list and holds the first acceptable one.
A registered address for the company. This becomes public and it is where official notices go.
Who holds the shares, and how many. Keep the number you record, because you will be asked for it again at your first beneficial ownership filing and it has to match.
Your financial year end. Usually the end of the month before your registration month, but you choose. It sets your tax and annual statement cycle from then on.
A card to pay with. The fee is paid at the time of filing.

What you can register at the same time, free

Most people register the company and stop, then pay someone later for things that were free on the day. On BizPortal these sit alongside the registration:

Your income tax number. Automatic. SARS registers every new company as part of the process; you do not apply.
A B-BBEE certificate, free. Available to exempted micro enterprises, meaning a private company or close corporation turning over no more than R10 million. Tenders ask for this constantly and people pay third parties for it.
UIF registration, free. The Unemployment Insurance Fund. Only if you have employees; a company with none cannot register yet.
Compensation Fund registration, free. This is COIDA, the workplace injury cover. Same rule: only if you have employees. See the COIDA guide for what it involves.
A .co.za domain for R63.25. Worth knowing the catch: you must transfer it to a commercial registrar within 12 months, free of charge, or it is deleted.
A business bank account with any of the big four banks.

If you have no employees on day one, UIF and Compensation Fund have to wait until you do. That is not optional later: both become compulsory the moment you take on your first employee.

What you get back

Registration certificate (COR14.3): the company's birth certificate, showing its name and enterprise number. Banks and tender boards will ask for it constantly.
Memorandum of incorporation (MOI): the company's rulebook. Most small companies use CIPC's standard short-form MOI, which is fine for a simple owner-managed business.
Income tax number: SARS registers every new company for income tax automatically as part of CIPC registration. You do not apply separately; the number arrives with or shortly after your registration documents.

How the registration runs, step by step

Decide the structure. For most small businesses this is a private company, a Pty Ltd. One person can be the only director and the only shareholder.
Pick up to four names and check them yourself first against the register, so you are not paying to be told a name is taken.
Reserve the name, or skip straight to registering with a name included.
Enter the directors, the shareholding, the registered address and the financial year end, and pay by card.
Tick the free extras that apply: tax registration is automatic, and B-BBEE, UIF and Compensation Fund are there if you qualify.
Collect your registration certificate and memorandum of incorporation, and save them somewhere you can find them. Banks and tender boards ask for them constantly.
Diarise the two dates that now exist: beneficial ownership within 10 business days, and your first annual return on the anniversary of registration.

What comes after registration

Registration is the start, not the finish. In the first weeks you should deal with:

Beneficial ownership filing. New companies must file their beneficial ownership register with CIPC within 10 business days of incorporation, naming the individuals who ultimately own or control the company. Skipping it blocks your future annual returns. We file it for R490.
Bank account. The bank will want your registration certificate, MOI, directors' IDs and proof of address. Trading through a personal account undermines the whole point of having a company.
SARS eFiling. Register the company on eFiling and appoint a registered representative so you can file returns and request a tax clearance PIN when clients or tenders ask for one.
Annual return diary. From the first anniversary of registration, the company must file a CIPC annual return every year, even if it never trades.

If you hire staff or expect turnover to grow, UIF, COIDA, PAYE and eventually VAT registration follow. None of these happen automatically.

Frequently asked questions

How much does it cost to register a company in South Africa?

CIPC charges R125 without a name, or R175 including a name if you do it in one step. A separate name reservation is R50. So R175 in government fees either way if you do it yourself. Agents charge more because they handle the forms, follow-ups and rejections; ProperSA's all-in service is R790.

Do I need certified copies of my ID?

No. BizPortal is completely paperless and CIPC states that no documentation is required. Your identity is confirmed against Home Affairs from the identity number you type in. Anyone charging you to certify documents for a straightforward company registration is charging for something CIPC does not ask for.

How long does CIPC company registration take?

CIPC advertises one day for a company registered with a name through BizPortal. In practice clean applications are quick and rejected names are what cause delays, because a rejection restarts the process. Checking your name options against the register first is the single best way to avoid that.

Can one person register a Pty Ltd?

Yes. A private company needs only one director and one shareholder, and it can be the same person. Many South African freelancers and consultants run single-director companies.

What can I register for free at the same time?

Your income tax number is automatic. A B-BBEE certificate is free for exempted micro enterprises, meaning turnover up to R10 million. UIF and Compensation Fund registration are both free, but only if you already have employees. A .co.za domain is R63.25, and you must move it to a commercial registrar within 12 months or it is deleted.

Do I need to register with SARS after registering my company?

Not for income tax. SARS issues the company an income tax number automatically through the CIPC process. You do still need to set the company up on eFiling and appoint a registered representative, and register separately for PAYE, UIF, VAT or customs if and when those apply.

What do I have to do straight after registering?

Two dates start immediately. Beneficial ownership must be filed within 10 business days of incorporation, and your first annual return falls due on the anniversary of registration. Both are easy while you remember and expensive once you do not.

Should I register a company or stay a sole proprietor?

The main reason to register is that the company's debts are the company's, not yours. Add to that the fact that tenders, the Central Supplier Database and most corporate clients will not deal with an unregistered person. The cost is the ongoing duties: an annual return every year, beneficial ownership filings, and separate company tax returns, whether or not you trade.

What is a memorandum of incorporation?

The company's rulebook: how directors are appointed, how shares work, how decisions get made. Most small companies use CIPC's standard short-form version, which is included in the registration fee and is fine for a simple owner-managed business. You only need a custom one if you have partners and want to agree something different.

What is the difference between a Pty Ltd and an NPC?

A private company (Pty Ltd) is for-profit and can pay dividends to shareholders. It needs one or more directors and one to fifty shareholders. A non-profit company (NPC) exists for public benefit, cannot pay out profit, needs at least three directors, and has members instead of shareholders. NPCs can apply to SARS for tax-exempt status; Pty Ltd companies pay the standard 27% company tax rate.

Can a foreigner register a company in South Africa?

Yes. The Companies Act sets no nationality or residency requirement for directors or shareholders, so a foreign national can own and direct a South African company on a passport alone. The catch is not CIPC, it is SARS: the company needs a public officer who is ordinarily resident in South Africa to handle tax matters, and opening a business bank account has its own bank-specific requirements for non-resident directors.

Keep exploring

Tax clearance guide Beneficial ownership guide Co-founder agreement, R450 All guides