by Thando Mgobhozi
Ever wondered what the procedure is for registering a business or are wanting to start a business but are sceptical because you think the registration process might take too long and you just don’t know what to expect? It is actually a lot easier than you think.
Here’s how and why
In a country where unemployment is such a big problem with alarming unemployment rates, you might have started thinking about starting a business of your own which will, in turn, create employment opportunities for those who really need it while also assisting the government in their fight to create employment opportunities. According to statistics, the South Africa unemployment rate was at a steady 29.1 per cent in the fourth quarter of 2019.
If you already have a business idea in mind, get started on that business plan and apply for a business loan should you need one. The perfect business plan is a step in the right direction to getting where you want to be. If on the other hand you have already started a business and need assistance on registering it, then keep reading.
If you are registering your business, this means that you require direct interaction with the government and are not just an informal business or a sole proprietorship who do not have access to benefits from the government and don’t need to register formally with The Companies and Intellectual Property Commission(CIPC). You would have already established what type of business you are in before taking a step further to have it registered.
Small businesses and startups which are usually known as small-medium enterprises (SME) are not legal entities and that is why they don’t need to be registered. This does not mean you cannot register your business as a sole proprietorship. You do need to consider the implications of this before you make the decision to have your business registered.
You will, however, still be required to fulfil some tax obligations as it is compulsory by law to register for an income tax reference number regardless of whether you are an entrepreneur (sole proprietor) running a business alone or in a partnership. Formal companies like private companies, public companies, closed corporations and the likes need to be registered and this is where the CIPC comes in.
What is The Companies and Intellectual Property Commission (CIPC)?
The Companies and Intellectual Property Commission (CIPC) is an agency of the Department of Trade and Industry in South Africa. One of its main function amongst many other functions is to deal with the registration of Companies, Co-operatives and Intellectual Property Rights (trademarks, patents, designs and copyright) and the maintenance thereof.
So what do you need to have when registering a business?
- The correct documentation
- You need to reserve a company name
- You need to register with the South African Revenue Services (SARS)
- Finally registering with The Companies and Intellectual Property Commission.
This is what registering a business looks like in a nutshell;
For more information on what this entails, see how to register a business in South Africa
Contact details and address of the CIPC can be found here; CIPC contact details