Company Registration

 

 

 
 


 

 

  • R999.00    R2100                                                                                                                 

 

  • About Company Registration
  • Register A Company

 

Company Registration in South Africa

The 3 stages of the company registration setup

The 3 stages of the company registration creation applies to all types of companies. They are namely, the Name application, appointment of directors and preparation of share certificates.

1.       Name Applications (CoR 9.1)

All name applications are lodged electronically on the CIPC website on a form called a CoR 9.1. CIPC then emails the results back to us after approximately 1 day.  If the names are rejected by CIPC (usually due to a comparative name) we will receive an email with an attachment called a CoR 9.5. (Name Rejection). The client then needs to submit a new set of 4 names at a cost of R110 per set of four names (CIPC cost R50).  We repeat this process until one name is approved. The approved name is emailed back to us on a form called a CoR 9.4. (Confirmation Notice) as illustrated below. We use the CoR 9.4 for all new company registrations as well as name changes to Close Corporations and (Pty) Ltd’s.

A number of clients manage to register their own names on the CIPC website but then get stuck when trying to complete the remaining part of the company registration and ask us to complete it for them.  In order for us to use the CoR 9.4 registered by them, we need a letter of authority from them giving us permission to use the approved name and complete the company registration. There is a letter of authority they can use for this on our website.

2.       The appointment of the Directors and supporting documents (CoR 14.3)

The next stage of the company registration can only start once we have an approved name (CoR 9.4). After this, we can print and compile the following supporting company documents namely:

1.       CoR 14.1 – Notice of Incorporation

2.       CoR 15.1A - Memorandum of Incorporation

3.       Certified copies of all the directors ID’s (Including the SwiftReg Staff member who complete the application’s ID) are attached

4.       The Limited Power of Attorney (LPOA) which authorises us to sign all the documents on behalf of our clients is attached

Once these are compiled and checked the company registration application documents are emailed to CIPC and it then usually take between 3-4 weeks to be registered and returned the company registration completed documents back to us. If successfully registered at CIPC we will receive a CoR 14.3 back.

 

If CIPC rejects the company registration for some reason, we will receive a CoR 14.2 and we need to resubmit a new company registration application. Each CoR 14.3 is allocated a unique registration number which is similar to the ‘ID number’ of the company and will remain unchanged even if the name of the company is changed.

 

3.       Preparing the share certificates for newly registered companies.

Once we have received the completed company registration (CoR 14.3) we can create the share certificates. The 14.3, the share certificates and other supporting documents are then emailed to the client.  CIPC does not register or issue share certificates. This is a value-added service offered by us which enables the clients to open bank accounts. Completed company registration digital attachments are emailed to the online clients and collected by walk-in clients not wanting documents to be emailed. These company registration or manual certificates are only printed on collection.

 

Company Registration in South Africa

The 3 stages of the company registration setup

The 3 stages of the company registration creation applies to all types of companies. They are namely, the Name application, appointment of directors and preparation of share certificates.

1.       Name Applications (CoR 9.1)

All name applications are lodged electronically on the CIPC website on a form called a CoR 9.1. CIPC then emails the results back to us after approximately 1 day.  If the names are rejected by CIPC (usually due to a comparative name) we will receive an email with an attachment called a CoR 9.5. (Name Rejection). The client then needs to submit a new set of 4 names at a cost of R110 per set of four names (CIPC cost R50).  We repeat this process until one name is approved. The approved name is emailed back to us on a form called a CoR 9.4. (Confirmation Notice) as illustrated below. We use the CoR 9.4 for all new company registrations as well as name changes to Close Corporations and (Pty) Ltd’s.

A number of clients manage to register their own names on the CIPC website but then get stuck when trying to complete the remaining part of the company registration and ask us to complete it for them.  In order for us to use the CoR 9.4 registered by them, we need a letter of authority from them giving us permission to use the approved name and complete the company registration. There is a letter of authority they can use for this on our website.

2.       The appointment of the Directors and supporting documents (CoR 14.3)

The next stage of the company registration can only start once we have an approved name (CoR 9.4). After this, we can print and compile the following supporting company documents namely:

1.       CoR 14.1 – Notice of Incorporation

2.       CoR 15.1A - Memorandum of Incorporation

3.       Certified copies of all the directors ID’s (Including the SwiftReg Staff member who complete the application’s ID) are attached

4.       The Limited Power of Attorney (LPOA) which authorises us to sign all the documents on behalf of our clients is attached

Once these are compiled and checked the company registration application documents are emailed to CIPC and it then usually take between 3-4 weeks to be registered and returned the company registration completed documents back to us. If successfully registered at CIPC we will receive a CoR 14.3 back.

 

If CIPC rejects the company registration for some reason, we will receive a CoR 14.2 and we need to resubmit a new company registration application. Each CoR 14.3 is allocated a unique registration number which is similar to the ‘ID number’ of the company and will remain unchanged even if the name of the company is changed.

 

3.       Preparing the share certificates for newly registered companies.

Once we have received the completed company registration (CoR 14.3) we can create the share certificates. The 14.3, the share certificates and other supporting documents are then emailed to the client.  CIPC does not register or issue share certificates. This is a value-added service offered by us which enables the clients to open bank accounts. Completed company registration digital attachments are emailed to the online clients and collected by walk-in clients not wanting documents to be emailed. These company registration or manual certificates are only printed on collection.

 

Registering a new business

The Companies and Intellectual Property Registration Office (CIPRO) was replaced by the Companies and Intellectual Property Commission (CIPC) in May 2011, together with the New Companies Act, the act changed the way business owners had to register their companies. The Act stipulates that no new close corporations (CC) can be registered, but those registered prior to 1 May could continue to operate as CCs.

All companies fall under specific categories with, each with specific requirements in terms of the documentation that is required. The Companies Act provides for two main categories of companies - non-profit and profit companies, with other types falling under these categories.

Types of business entities:

Non-profit companies: A company incorporated for public benefit or other object relating to one or more cultural or social activities, or communal or group interests.

Profit companies: A business/organisation whose primary goal is making money, this includes anything from retail stores to restaurants to insurance companies to real estate companies.

Personal liability companies: Company directors and past directors are jointly liable for any debts and liabilities arising during their periods in office. The company name ends with the word ‘incorporated’.

Public companies: A public company is one that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange. It has more than 50 shareholders and its shares are offered to the public.

Private companies: These are similar to what was previously known as close corporations. Some of the changes made to private companies include fewer disclosure and transparency requirements, no longer being limited to 50 shareholders, and with a board that must comprise at least one director. The name of a private company must end with the expression ‘Proprietary Limited’ or ‘(Pty) Ltd’.

Registering a new business for tax

For every new business established, you are required to register with your local SARS office to obtain an income tax reference number. Registration must be done within 60 days after starting operations by completing an IT77 form, available at your local SARS office or from the SARS website.

Small businesses with a turnover of up to R1 million per annum will now be able to pay certain taxes (turnover tax, VAT and employees’ tax) twice instead of once a year, making the process more efficient for qualifying small business owners.

Turnover tax is a simplified tax system to make it easier for micro businesses to comply with their tax obligations. Turnover tax is worked out by applying a tax rate to the taxable turnover of a micro business. Depending on other factors such as turnover, payroll amounts, whether you are involved in imports and exports etc. you could also be liable to register for other taxes, duties, levies and contributions such as VAT,  PAYE (Pay-as-you-earn) UIF contributions (unemployment insurance contributions).

Register a Private Company

Private Company A private company is the most common and simplest form of company to be registered. It is comparable to a close corporation. Close corporations are no longer registered. Private Companies may not offer shares to the public and restrictions are also placed on the transferability of their shares. Private companies must have at least one director and one incorporator. The director and incorporator may be the same person. The word "person" includes a juristic entity. This means that a legal entity or a trust may be an incorporator of a new company. Most private companies are owner managed and tend to have a smaller number of directors Name Choices The first thing you need to do for company registration is to start to think of possible names. Points to note are Think of four possible names, to be used during your company registration, all different from each other. Avoid punctuation as most characters such as @,!, and even an apostrophe are not allowed Check the spelling in an English dictionary. It costs to change it later. If your name is close to another well known brand, reject it now, its not worth the trial trying to fight for the rights of using it. Director and Shareholder Information Choosing who is going to be in partnership with you, during your company registration, is probably one of the biggest decisions that any business owner needs to make during the process of company registration. A Director managers the business and a shareholder owns it. You will probably be both a director and a shareholder. However if you are in partnership then you may have more directors and shareholders. You will need all their information such as Residential, Business and Postal addresses and cell phone numbers, as well as a good digital copy of their ID's on your computer. This you can do later, but without them we can not complete your company registration. A Printer You will need a printer attached to your computer. This is often overlooked, however you will have to sign a document (called a power of attorney) that gives us the right to register your company on your behalf. This will need to be printed and faxed to us. Time Although our competition boasts times that we believe are designed to mislead their clients, we know that a company registration usually takes about three weeks. We statistically analyze the speed of company registration and can usually predict the date of the arrival to a few days for your convenience. Although shelf companies are available they are not economical due to cost and time and therefore not advised.