Questions and Answers about Company Registration in South Africa
Some questions and answers concerning new company registrations and other services.
Please note that we are an online company and you can use our website from anywhere in South Africa – you do NOT have to visit our office to order and complete a service – everything happens over the internet.
Company Registrations in South Africa
Q. Please name the requirements if one wants to register a new company?
A. The only requirement is a valid ID Document or Passport, and that you must be above 18 years of age.
Q. How many people can start or register a new company?
A. Minimum requirement: 1 Director & maximum requirement: no more than 20 Directors.
Q. How long is the period to complete the company registration process in South Africa?
A. It depends upon the package option of your choice – your Consultant will be able to advise you the exact timeframes.
Q. How does the Company’s name reservations take place?
A. We firstly confirm that the name you have chosen for your new Company Registration is not already taken. Then we apply to register your Company name as part of the company registration process.
Q. What is the difference between a Shelf Company and a Pty Company?
A Shelf Company is a Pty Company that has already been registered with the CPIC with one purpose in mind – that is to sell it to people who need a Company Registration Number to apply for a tender or enter into a contract. Our Shelf Companies that are available do not have a trading history, and you will be able to have your Company Registration number immediately. It does however take time to amend the Directors details on the (shelf) Company to that of your own – but we also assist with this process as part of the Shelf Company service.
A Pty is registered with your own Company name and Directors details from the beginning – it takes longer to get your Company Registration number, but once you have the registration number no further Directors amendments are required.
Q. Which is the better option – a Shelf Company or a Pty Company?
A. It depends on your situation. If you have a tender or need to enter into a contract swiftly and you need a company registration number quickly, then a Shelf Company can be worth your while. But take note that a Shelf Company’s amendment process of changing the Directors address and also the Business address of the Company can be a lengthy process. Only when these amendments have been completed at CIPC can a Business Bank Account be opened. To change the name of the Shelf Company constitutes an additional amendment.
If you can wait a little bit longer for your Company Registration number, a new PTY Company is by far the better and easier option, as no additional amendments are required once you have the company registration number.
Q. My new Company name is already reserved at CIPC but I want you to help me with the Company Registration – how do I proceed?
A. We can assist you to complete your Company Registration. Please get in touch with your dedicated consultant.
Q. Are there, apart from my Company Registration any other fees that I have to pay?
A. Our fees are all inclusive for the first 12 months after company registration, but by South African Law, all registered Companies have to pay an Annual Return fee to the Company Registrar (CIPC) once a year.
Q. How do I know if you received all my documents?
A. The moment we receive your online application, an e-mail with more information and instructions will be send to you regarding your registration documentation. Our Admin department will confirm receipt of your document within 24 hours, either via e-mail or sms. You can also contact your Consultant at any time for assistance.
Q. Can you tell me whether my Company name needs a code or extension? If for example the focus of my Company is mainly on construction but I also want to do work not related to the building industry, will I have to register a name such as “XYZ Construction?”
A. If you want to apply for tenders or enter into contracts and not limit yourself, it might be wise to reserve a name with either the words “Trading” or “Projects and Services” at the end of the name, for example: “XYZ Projects and Services” or “XYZ Trading”.
Q. Please mention all the places in South Africa that are covered by your services.
A. Fortunately we are not bound by location; your Pty can be registered whereever you are as long as you have access to the internet.
Q. 1. Please tell me what is included in the price of R990 for a new company registration?
A. 1. All our Company Registrations include a Guaranteed Company Name, Free Tax Number and Free Official BEE Affidavit.
Q. 2. Please explain the steps I should follow for Company Registration in South Africa?
A. 1. Complete and submit the easy online registration form (the sign up form is at the bottom of this page).
2. A Dedicated, experienced consultant, who is able to help with your questions will be assigned to you as your CIPC representative.
Q. What should I do if I want to register a “Holdings” Company Structure?
A. The only guaranteed way to make this kind of structure successful is to work the other way round and start at the ‘top”. How though?
Step 1: Your new Pty Company has to be registered first as a Holdings Company by ending with the word “Holdings” or “Group,” meaning you start your holdings company registration from top to bottom.
Step 2: After you have done that, you can register two or more subsidiary or secondary Companies under the original company, where the controlling shares is owned by the Holdings Company.
This means that both of these companies have to be registered at R 990 per company, allowing you to start with the Holdings Company and then continue to register the companies “below” as your finances permit. These companies will then be owned, either partly or fully, by the Holdings Company.
Q. How do I go about to register a Holdings Company in South Africa?
A. Just complete and submit the easy registration form below and advise your dedicated Consultant that you wish to register a Holding Company.
Company Registration Certificates
Q. Is it possible to get the original hard copy Registration Certificate?
A. No. CIPC’s certification system has changed to a complete online system and therefore all your company’s certificates will be sent via e-mail. This certificate can now be printed out and is valid for all your future business deals in South Africa.
Q. What is a MOI?
A. MOI or Memorandum of Incorporation is a registration document that a business owner needs to officially operate or run his or her company. Most banks will require your company’s MOI documents if you want to open a business bank account. Contact us to help you in registering the standard CIPC MOI.
Q. What other services do you offer apart from Pty Company registrations?
A. Apart from helping you with the registration of your company, we offer over 120 additional services for your new Company, such as VAT registration, COID Registraiton, Letter of Good Standing, Tax Clearance, BEE, branding and much more. Your dedicated Consultant will be able to help you with additional services if required.
Q. What do I need to acquire a Letter of Good Standing from the Compensation Fund?
A. The following should be up to date:
1. Proof that you have a registered company in South Africa.
2. Proof that you are registered with the Compensation Fund.
3. Proof that the annual fees that should be paid to the Compensation Fund is up to date.
We can help you with all of the above – just speak to your dedicated Consultant for help.
Q. What can I do to stop my Company from being deregistered?
A. We can help you to restore your Company, by updating the outstanding annual returns of your Company. In the event that you cannot trade because your company was deregistered and taken off CIPC’s system, we can also assist.
Q. What is the process I should follow if I want to validate my company or other companies’ information?
A. You can validate any South African company that is registered with CIPC through a Confirmation Certificate that contains the company director’s details and location. Just contact your Consultant for more details.
Q. Why is a Share certificate necessary for my new Company?
A. Banks and other entities require shareholder certificates – even if your company only has one shareholder. Shareholder certificates are a separate function from CIPC and can only be created by following a legal process. A Share Certificate proofs that you own the company (or part of it).
We can assist to have a legal Share Certificate prepared for you.
Q. Do I need an accountant?
You do not need an accounting officer when you register your Company but it will be wise to get the services of one after registration, who can take care of all your bookkeeping, taxes and other financial needs. We offer great Accounting Packages – please contact our Consultant for more info.
Q. Can you give me more information regarding share allocation to the Company’s different shareholders?
A. The allocation of shares is done through share certificates and a share register, and we can help your Company with this.
More relevant questions
Q. Is it necessary for me to hand in audited financial statements for my CC/Pty?
A. You will have to hand in an audited statement if you have registered a Pty Company under the Old Company’s Act, however, if your Pty was registered under the new Act of 2008 or you have a CC, you will not have to hand in an audited statement.
Q. Should I keep any documents?
A. It is very important for any Pty company to keep accurate accounting records such as bank statements, invoices, cashbooks, ledgers, journals, cheque books, deposit slips, stock records, and an asset register. Your bookkeeper will in detail explain the reasons why you should also keep a record of your income, expenses, assets and/or liabilities.