You can either enter the market while maintaining your company’s registration outside South Africa or register and invest in a business in South Africa, that is if you are a foreign company looking to operate in South Africa. Different conditions apply depending on your chosen structure of doing business in South Africa. However, there are several things you should bear in mind if you’re considering setting up an offshore corporation. They give a wide range of benefits to the incorporation. and incorporation principals, the incorporation. can register a South African subsidiary. Alternatively, the incorporation can register as an external company in terms of section 23 of the Companies Act. However, also registering a regional subsidiary can prove problematic if none of the incorporators have a South African visa. It may be better to go for an external incorporation structure for the South African operations. The incorporators of external companies don’t need South African visas to register the external incorporation.
The types of companies to be registered
There are five different types of companies that you can register, and they can be registered either as non-profit or profit companies. A popular online and easy-to-use choice is the CIPC (Companies and Intellectual Property Commission) but various private companies also charge an amount to manage the whole process for you.
While all businesses don’t need to formalize their registration, companies that wish to do business with the government or formal sector or to partake in tenders are demanded to do so. These types of businesses will benefit from a lower tax-duty rate than that applied to other people. As a registered business, you will need to file a periodic tax duty return and pay a periodic amount, whether the incorporation is trading or not.
Further informal businesses and sole owners may not feel that there is initially an important benefit to them to warrant this step. It’s important to bear in mind that indeed though you may not formally register your incorporation., you will still have to be registered with the South African Revenue Services (SARS), as you are liable for duty if your development exceeds the specified threshold.
Company name
In terms of the South African Companies Act, 2008, incorporation may be registered with or without the incorporation name. However, its registration number automatically becomes the incorporation name, which is the quickest way to register it, if you register your incorporation. Without a reserved name. Your incorporation may distribute with a trading name or add a name after the stage. However, you will first need to reserve the name and apply for a name change, there is an extra cost to this. Whatever type of incorporation you decide to register, you will bear a Memorandum of Incorporation (MOI) which lays out the rules agreed to by the shareholders for the running and conservation of the business exertion. This MOI is available in a standard format or can be customized to meet certain conditions or waive specific requirements. However, it’s suggested that you draw this up with the backing of a legal person and this document must be submitted together with your incorporation registration operation If you decide on a customized MOI.
The steps involved in the registration process
The below steps need to be taken to register as a Private Company with a standard MOI on the CIPC’s website:
- Register as a customer.
- Deposit the needed amount for the registration into the CIPC account.
- Reserve your marketable name.
- Register your Private Company with a standard MOLI online.
The following supporting documents must be scanned and posted to CIPCateServicesCoReg@cipc.co.za:
- Verified identity duplicate of the applicant.
- Verified duplicates of the Identity Documents of the Directors and Incorporators.
- The name confirmation document (COR9.4), if applicable.
- Power of Attorney (if applicable).
For a trust or incorporation/juristic person as an incorporator, the resolution and verified ID duplicate of the duly authorized representative must be attached.
A Company Registration Certificate can be issued within 3 – 5 days after the submission of all the demanded documentation. The MOI can take up to 10 days to exercise, especially if you have made any amendments to the standard version.
