When you are ready to open a company you first need to make sure that you’ve covered the basics. For instance, having a business plan will help you make sure that your venture makes business sense. You need to do your research thoroughly to make sure that you have fulfilled every need of the Companies Act before you start trading.
You should also keep in mind the fact that certain types of businesses will require a licence to operate. Depending on the type of business you want to run, make sure that you have all necessary licences and documentation.
Once you’ve found your niche market and have completed your business plan and have the necessary capital to start, make sure that you register your company.
Register your company
Register your company at the Companies and Intellectual Property Commission (CIPC) via the website www.cipc.co.za. Once you have registered to open a company, fund your virtual account with at least R175. This amount will cover the registration cost of R125 and the name reservation cost of R50.
The types of companies which you can open in South Africa are either a Non-profit Organisation or a Profit Company. Company registration costs vary between R175 for a Private Company and R475 for a Non-Profit Organisation. Other company types include State-owned companies and public companies.
Open a bank account
To open a bank account for your company you need to submit proof of directors’ identity and original company documents.
Register for Tax
Visit your nearest South African Revenue Services (SARS) for income tax registration, employees tax, Pay As You Earn tax, Unemployment Insurance Fund as well as a skills development levy.
The company is incorporated by the lodging of a Notice of Incorporation and Memorandum of Incorporation. As soon as you have all necessary documentation and relevant licensing you can start trading.