Registering a company may seem complicated and strenuous, and for this reason most entrepreneurs give up on their vision to start a business. It is however a simple task if you have all the required documentation and adhere to the prescribed regulations set by the Companies and Intellectual Property Commission (CIPC).
There are 5 types of companies in South Africa namely the private company (PTY) Ltd, public company (Ltd.), personal liability company Inc., state owned company SOC, and sole proprietor. The advent of the digital age has allowed registration to be completed both manually and online which is much quicker and easy, although only a (PTY)Ltd can be registered online.
Wasley Warren, the Branch Supervisor of the Randburg Jozi SME Hub says registering a company doesn’t guarantee that the business will get customers or generate income, it means the company will be legally registered and opened as an entity with CIPC.
Below are the 5 essential steps to be followed in order to successfully register a company;
- Login to the CIPC website alternatively visit their offices in your region.
- Secondly you must register as a customer online, a confirmation SMS will be sent to you with a customer code which you will use to login.
- After you login deposit into the CIPC bank account R125 for company registration without a name reservation (enterprise number will be provided) or R175 for a private company and R475 for a public company registration with a name reservation t. Use your customer code as reference when depositing funds into the CIPC account. If you have already applied for a name then your company will be added to the company registration queue immediately, on condition that there is enough credit in your customer account.
- Ensure that all forms are complete and signed with all the supporting documents, then scan and send them to CIPC at eServicesCoReg@cipc.co.za or upload them functionally on their website.
- The last and final step is to consult with CIPC for the turnaround processing time.
Wesley advised that registering with a name is ideal for future purposes and client attraction, “Always register with a name, one can register a company with a number only however to change it later will attract costs as well as the possibility that the desired names are rejected.
A business can be trading as ABC for example but then when applying for supplier registrations and tender opportunities the name differs to the trading name. This is why it is best to register under a name that the business will operate to avoid confusing your clients” He said. He added that it is best to hire a reputable firm to assist with the whole registering process, because there are no shortcuts and everything needs to be done correctly.
This information will be helpful to successfully register any company and realizing the dream of being a business owner. Barriers to entry are a myth, if you properly research and consult businessmen and women or business hubs like the Jozi SME Hub a company that create a conducive platform to enable entrepreneurs to start or grow their very own businesses.
- Step by Step Guide – Document Upload – New Company, CIPC, 2016