Why you should register your small business in South Africa and how to do it
Category Commercial and Industrial News
You've made the decision to be an entrepreneur and you're on your way to success! An important step for any new business in South Africa is to get registered with the Companies and Intellectual Property Commission (CIPC). 3Cube Property Solutions provides a breakdown of why you should register your business and how to do it.
The benefits of registering your start-up
In a detailed guide on the subject, Old Mutual provides a range of benefits of registering your start-up. Perhaps most importantly, registering your business is a way to provide a guarantee of your legitimacy to clients. Just as a patient wouldn't want to go to an unqualified doctor, a client often doesn't want to buy products or services from an unregistered company.
Here are some other advantages of registering your business at a glance:
- You'll need to be registered before you can apply for a business loan.
- Registering enables you to open a business bank account, which provides an important track record of how your business is growing.
- It establishes the company as a legal entity independent of its shareholders.
- As an official business, you can benefit from tax incentives and potentially receive state funding.
How to register your business
You can register your business online using the Bizportal platform that has been created by the CIPC. You'll need to have some information together to be able to register:
- The specific type of company that you'd like to register (this is usually a PTY Ltd company, but others like partnerships and public companies also exist)
- The personal details of all company directors
- The business's physical address
- Some potential names for your business
Tips on choosing your business name
If you're not yet sure what you want to call your business, you can still go ahead with the registration process. As part of the registration process, the CIPC will give you a temporary name to use as a placeholder.
If another business has registered the name you want, you won't be able to use it. Before you register your business, spend some time browsing the internet and be as sure as you can be that no one else is using the name that you want to use. To prevent any potential problems, you can submit up to four potential names - and the cost of each extra potential name is minimal.
What happens next?
Once your application has been processed, you will be issued a disclosure certificate citing all the details you have provided. You'll also receive a memorandum of incorporation, which details how South African law will govern your company. This document will also detail the rights and responsibilities of all directors and shareholders.
Things to think about once your company is registered
Once your company registration is complete, the next step is to register it with SARS and get an income tax reference number for your business. You'll also need to start thinking about other practical issues, like finding suitable premises for your business, how you will promote your business and whether or not it's time to start expanding your team.
Help is at hand
If you would like assistance with the process of registering your business with the CIPC, there are various service providers (including certain banks) that will do the process for you. In some cases, this may be part of a package deal that also includes helping you file your business's annual tax returns.
Help is also at hand when it comes to looking for the right premises for your new business. 3Cube Property Solutions has built a strong reputation for helping businesses in Gauteng - from startups to multinationals - find premises that work for them. Contact us today for more information.
Author: 3 Cube Property Solutions
