Essential documents you need after company registration in South Africa (with an infographic)

In this post, we'll help you determine, and find, the documents you need for a new company in two sections.

The first is a simple infographic (below) that’ll help you determine which basic documents you need specifically for your business.

The second part will help you clarify the details on some of the most common documents you need after registering a new company in South Africa. Here, we’ll also offer you useful links where you can find or apply for these specific company documents.

Before we dive into the essential documents you need for a new company in South Africa, I just want to take a moment to congratulate you.

If you’re on this webpage, chances are you've made a really big decision in your life: you're starting a business.

So, CONGRATULATIONS.

It's not easy, but it's rewarding - and there are multiple resources to help you smooth out the rough patches. I hope this post is one of those resources for you.

Okay, let’s get into the documents you need to legally run a new company in South Africa.

Here’s a quick recap of our two sections:

An Infographic: A Guide to figuring out what documents YOU need for YOUR new company

More details on the most common documents you need for a new company (and where to get them)

1. Company Registration (CIPC)
2. Employer Tax Registration (SARS)
3. A B-BBEE Affidavit or a B-BBEE Certificate
4. COID Registration (Department of Labour)

Section 1

An Infographic: A Guide to figuring out what documents YOU need for your new company

The first thing you need to know about paperwork in South Africa is there is no fixed checklist for a new company.

What you need depends on what your business looks like right now, which industry you’re in and how you’d like to grow your business.

That doesn’t mean there isn’t compulsory paperwork, but what’s compulsory to you, might not be compulsory to another business in another industry with another goal.

To help you get started, I’ve created a simple infographic (below) that’ll help you determine which basic documents you need for your business and its goals.

These documents will either be compulsory or helpful to your business.

It’s important to note that your industry will determine which specialised documentation you need. If you have a Security Company, for example, PSIRA Registration and PSIRA grading for all your directors, members and staff is compulsory.

However, in this infographic, we’ll walk you through general documentation. You can find out more details about these documents below.

You can find out more about industry-specific documentation for Security Companies, Construction Companies and Cleaning Companies by contacting Company Partners.

click to enlarge

Section 2

More details on the most common documents you need for a new company (and where to get them)

1. Company Registration at the CIPC

Company registration at the CIPC isn’t compulsory to run a legal business in South Africa. It is, however, extremely helpful. Company Registration offers you both a company registration number and a tax number. The Registration Documents issued by CIPC will be: CoR14.3, CoR14.1, CoR14.1A and MOI (CoR15.1A).

A company registration number is helpful, because:

• It’s usually a prerequisite when you fill out applications for funding, loans, contracts, RFQs and Tenders.

A SARS tax number is useful because:

• It helps you define your business finances as something independent to your personal finances.
• Depending on which company structure you choose, it can help you limit your personal liability to your business’s debts, expenses and risks.
• It’s also often a prerequisite to contracts, Tenders, RFQs, loans and funding.

What happens when you don’t register a company?

Once you start a business, it’s automatically recognised as a Sole Proprietor business, even without CIPC registration.

If you have one or more partners, things can get slightly trickier and I’d highly recommend registering a company in order to issue share certificates and appoint directors. It’s very important to create a written shareholders agreement too.

How do you register a company in South Africa?

You can visit the CIPC’s online portal here.  A faster and simpler alternative is using Company Partner's fast-tracked company registration service. Visit them for fast Company Registration here.

2. B-BBEE Certificate or Affidavit

If you’re just starting out, you probably need a B-BBEE Affidavit rather than a B-BBEE Certificate.

According to the latest South African regulation, businesses who earns less than R10 million in turnover (sales) every year should get a B-BBEE Affidavit. Those who earn R10 million annual turnover or more should get a B-BBEE certificate.

What is a B-BBEE Affidavit and how is it different than a B-BBEE Certificate?

An Affidavit is a form of self-declaration. A B-BBEE Affidavit is a self-declaration of your business’s Black Economic Empowerment. It needs to be stamped by a Commissioner of Oaths. After it’s stamped, it will serve as your legal B-BBEE document - until you hit the annual R10 million turnover mark.

What happens when you don’t get a BEE Affidavit?

It’s not illegal not to get your B-BBEE Affidavit, but you will most likely need it if you want to apply for Tenders, Contracts, RFQs, funding or loans in South Africa.

Where can I get a B-BBEE Affidavit or a B-BBEE Certificate?

You can order a B-BBEE Certificate on the CIPC’s ePortal. The faster alternative is having one of Company Partner’s consultants assist you. You get a FREE B-BBEE Affidavit with all Company Partners’s services.

3. Employer Tax Registration at SARS

When your business employs someone, you need to register as an employer at SARS within 21 days.

Do you have to register for Employer Tax at SARS if it’s only you in the business?

Even if you’re a solo-entrepreneur, and your business only pays you a salary, you have to register as an employer. Technically, that means your business employs you.

There are some exceptions, but typically you’ll need to register as an employer.

How do you register as an employer?

You can visit SARS or you can make use of Company Partners easy tax compliance services. They offer fast-tracked compliance service for Employer Tax Registration to simplify your paperwork process.

4. COID Registration (and a Letter of Good Standing) at the Department of Labour

A Letter of Good Standings proves that your business is “in good standing” with the national Compensation Fund (also known as COID).

The Compensation Fund helps your business cover any medical or remuneration costs in the case of any work-related harm or injury to your employees.

In order to get this financial support, you need to contribute a small fee to the fund. This sum is determined as a percentage of your employees’ salaries.

If your fees are outstanding none of your employees are covered.

A Letter of Good Standing is a document that can be issued to prove that you are registered with COID and that all your fees are up-to-date with them.

Why is a Letter of Good Standing so important for Tenders?

Without proof that your employees are insured by the national fund, other businesses are sceptical of partnering with you. They do not want to be held liable for any work-related harm or injury to your employees.

How do you do COID Registration?

You can register for COID directly at COID. However, this can be a tricky process if you're doing it for the first time. There are various application forms and steps in the process.

A simpler and faster option is registering for Company Partner’s COID Registration service.

The content in this article was provided by Pty Company Registration (also known as Company Partners).

Pty Company Registration is South Africa's leading Company Registration Service Provider, with a team of over 30 dedicated experts who have assisted over 20 000 South African Businesses to grow into legitimate Companies since 2006. We offer over 120 Company Services, including Company Registration, Shelf Companies, Tax Clearance, VAT Registration, Letter of Good Standing, COID, Website Design, Logo Design and Tender Documents. You can be located anywhere in South Africa (or the world) as everything happens over the Internet. You will receive support from your own dedicated Consultant.

For more information, contact:

Tel: 0800 007 269 (toll-free)

Website: Pty Company Registration