Questions and Answers
New Company Registrations
Q. How does one register a Company in South Africa?
A. First you have to choose your preferred Company registration option and/or Company Registration package. After you have applied we will be in contact and proceed to process your Company registration documents online.
Q. How does one register a CC?
A. The Close Corporation (CC) and Private Companies (Pty) Ltd. Company formats have merged together ever since the new Companies Act of 2008 was introduced. Only “Pty Company Formats” can be registered due to that enforcement. If you still have a CC, it would be better if you convert to a Pty.
Q. What are the requirements to register a new Company?
A. There are three necessities:
1. A valid identification document or passport;
2. Proof of a South African Address (personal and / or business);
3. Applicant must be 18 years or older
Q. What is the required number of people to start a Company?
A. You need 1 (one) director but no more than 20 (twenty) directors.
Q. What is the duration of the Company registration process?
A. This will depend on the option and/or package you decide on.
Q. How does one reserve a Company name?
A. We will first make sure that your Company name is not taken. Secondly, we apply to Register a Company and your Company name will be done by us as part of the Company Registration process.
Q. What if I have a Sole Proprietor and a “Trading As” name? Can that name be used for my new PTY?
A. The current Consumer Act specifies that you cannot use the term “TRADING AS”, the concept has fallen away. Your Trading Name should be on all documentation and signage. Should you want to register your Pty with your Trading As name we will first have to apply for a name reservation at the CIPC to ensure the availability of your name for registration.
Q. Is there a difference between a Shelf Company and a Pty Company?
A. A Shelf Company has one purpose: to be sold to persons needing a Company registration number for either a contract or a tender application. It is a Pty already registered with the CIPC. Our available shelf companies have no trading history or VAT/Tax. We include a possible change of name, business address and director details in the price of the shelf Company.
A. With a Pty Company you can choose your Company name and directors but must still register it. The name reservation and final registration process must be done and these are dependent on the workload at the CIPC.
Q. How do I know whether the Shelf Company is a better option than a Pty Company?
A. This depends on your situation. A Shelf Company is worthwhile if you have a tender and you need a Company quickly or you need to set up a Contract quickly. Keep in mind that the Shelf Company registration process includes changing the Director/s and Business Address of the Company and this Amendment Process can take a while. You can only open a Business Bank Account once the amendments have been completed at the CIPC. You could also change the Shelf Company name which is of course an additional amendment.
Q. I don’t know what the next step is after having reserved my name at CIPC. Can you assist?
A. Yes we can. You need to apply here and indicate the following next to your Company Name: “9.4 received”. A consultant will contact you to assist with registration of your Company.
Q. Do I need to pay other fees after my Company Registration?
A. For the first 12 months after registration our fees are all inclusive. Registered Companies must, by South African Law, pay an Annual Return fee to the Company Registrar (CIPC) i.e. once every 12 months.
Q. Was my documentation received?
A. As soon as you have signed up Online we send an email with more information. The email gives you further detail as to where to email your Documentation to and the Document department will confirm – via email or sms – receipt of your documents within 24 hours.
Q. Does my Company name need a code or an extension?
(i.e If I want to trade in the building industry, would I need a specific word in my name like “XYZ Construction”? as I also want to do other work not related to construction.)
A. A good idea is to reserve a name with “Projects and Services” or “Trading” at the end, for example. “XYZ Projects and Services”. Should you tender for contracts your name will not sound limited. When you are ready to start, apply to register your Company.
Q. Can you give me the locations in South Africa that your services cover?
A. Neither we nor your registration is bound by location. We can register a Pty for you anywhere in the world as long as you have internet access. Contact us for further information.
Q. What is the process and does the amount of R795 / R895 include everything?
A. 1. The name reservation and Company registration is included in the once off fee. Other Company Services like BEE and Tax is charged at an additional cost after the completed registration process.
2. First complete the online registration form at the bottom of this page.
3. You will be assigned a dedicated Consultant for representation at CIPC. This person will be able to help you with any and all of your queries.
4. What we need from you are the following: Proof of payment for the application fee, Power of Attorney form, certified ID’s / Passports for each Director and Company and Director’s details.
5. We will then register the Company for you as well as appoint the Directors, within CIPC’s latest timeframes.
Q. How does it work if I want to register “Holdings” Company Structure?
A. 1. For this kind of structure to be successful you need to start at the ‘top’.
• Step 1: A new Pty Company needs to be registered as a Holdings Company at the ‘top’ – you will need to register this Company first ending on the word “Holdings” or “Group”.
• Step 2: You can then register two or more ‘subsidiary’ companies below that Company in which the Holdings Company owns the controlling shares.
Each of these companies need to be registered at R895 each so you can start with the Holdings Company first and, as your budget allows, register the companies ‘below’ which will be fully or partly ‘owned’ by the Holdings Company.
Once you are ready, start by clicking on this link: Company Registration Option 1.
We will then make contact with you and register a Holdings Pty Company for you. Should you want to do “register a holdings Company and subsidiaries” in one go, we can offer you a discount. Please contact us for a quote.
Q. Will I receive an original hard copy Registration Certificate?
A. All Company Certificates are sent electronically via email as CIPC has changed their certification system to an entirely online system. Your certificate can be printed out and will be accepted for all your business endeavours in South Africa.
Q. Please explain what an MOI is?
A. MOI stands for Memorandum of Incorporation. The MOI is one of the Registration Documents a business owner needs to operate his / her Company officially. In order to open a business bank account at most banks you will also need your MOI documents. At CIPC we register the standard CIPC MOI for our Clients.
Q. Do you offer other services besides PTY Registrations?
A. We assist you with the Company registration process and we also offer a comprehensive list of other Company registration services. Click Here to view our Services List.
Q. What is required for a Letter of Good Standing from the Compensation Fund?
A. You will need the following:
1. You need a registered Company. Click Here to register a Company.
2. You also need to be registered with the Compensation Fund. For more information, click Here
3. Lastly, your annual fees that are payable at the Compensation Fund, need to be up to date.
Q. How do I stop the deregistration process of my Company?
A. If CIPC has no record of 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 Your Company may have been ‘deregistered’ and taken off CIPC’s system and you will be unable to trade if your company fees were too far in arrears (normally 2 years or more). In this case you can apply to re-instate your Company (either Pty or Close Corporation).
Q. What is the easiest way to validate my Company or other companies’ information?
A. All Companies registered with CIPC can be validated through a Certificate of Confirmation containing all the location / Director’s details of the Company.
Q. Why must I have Share Certificates made?
A. This is because Banks and numerous other entities require of you to have a Share Certificate, even if you have only one Shareholder. Shareholder Certificates can only be created legally by following a very specific process and is a separate function from CIPC.
Remember, if you want to do this the right way, an attorney or an accountant is the most appropriate enterprise to prepare a legal Shares Certificate for your business. We offer this service.
Q. I already have a CC. Do I keep it or switch to a PTY?
A. You can keep it as it is but take note that there are new, necessary requirements so you will need to stay up to date. A CC is not recognised if you want to do Imports or Exports so it is a good idea to convert. If you switch to a PTY you will gain access to Shares that you will be able to sell and use for investment.
Q. Should I have an accounting officer?
A. Upon registration you don’t need an accounting officer but we do advise that you use one after registration to take care of your bookkeeping and other financial needs. We have an in-house accountant based in Gauteng who can assist you with all your accounting needs. Contact us if you need accounting services.
Q. Please explain how shares are allocated to the different shareholders of the Company?
A. Shares are allocated through a share certificate and share register. We can help you with a share certificate for your Company.
Q. Should I register my Pty for Income Tax / Tax Clearance / VAT?
A. Yes you must. After the completed registration process, CIPC should automatically register your income tax number. Should CIPC fail 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.
Keep in mind that VAT registration can only be done after the Pty Company has proof of R50 000 or more in sales. This must be shown with an invoice or contract. Once your Pty reaches these requirements for VAT our SARS department can register your VAT number.
Q. Must I hand in audited financial statements for my CC / PTY?
A. For a CC you do not have to hand in an audited statement and if your PTY was registered under the new 2008 Act you also do not have to. However, if you have a PTY Company under the Old Company’s Act you will need to hand in an audited statement.
Q. Please explain the Timeframes?
A. Click Here to view our current timeframes. These are the length of time it takes for a Service to be completed. Keep in mind that we are dependent on the CIPC.
Q. Are companies still using Trading As names?
A. Companies are no longer allowed to use ‘Trading As’ names in terms of the new Companies Act of 2008. You must trade under the name that has been approved by CIPC. Contact us for assistance.
Q. Are there documents that I need to keep?
A. Every Pty Company needs to keep the following accurate accounting records: 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. You can contact your bookkeeper for more information about this.