Starting your own business is an exciting leap - but before the sales roll in or the team grows, there are a few key boxes to tick to stay compliant and avoid admin headaches later on. Whether you’re launching a side hustle or setting up a fully-fledged company, here’s a handy checklist of the basic registrations and setups required for South African businesses.
1. Register Your Company with CIPC
If you’re going to operate as a private company (Pty Ltd), you’ll need to register with the Companies and Intellectual Property Commission (CIPC). This gives your business a legal identity separate from your own, and comes with added credibility. You’ll also receive a company registration number and founding documents (MOI).
2. Open a Business Bank Account
Once you’re registered, open a business bank account in the company’s name. This keeps your personal and business finances separate and is often required by funders, suppliers, and SARS for tax compliance. Most banks will ask for your CIPC registration docs and proof of address.
3. Register with SARS
Your business must be registered with the South African Revenue Service (SARS) for income tax - and depending on your turnover or staff, you may also need to register for VAT, PAYE, UIF, and SDL. Many of these can now be handled via eFiling, but it helps to know which registrations are compulsory from the start.
4. Register with the Department of Employment and Labour
If you plan on hiring employees, you’ll need to register with the Department of Labour for Unemployment Insurance Fund (UIF) contributions. This ensures employees can claim short-term relief if they lose their job or take maternity leave.
5. Understand Your BEE and CSD Requirements
Many small businesses eventually need a BEE certificate - especially if they plan on bidding for government tenders or partnering with corporates. You may also want to register on the Central Supplier Database (CSD) if you plan to supply goods or services to the public sector.
6. Set Up Accounting and Record-Keeping
Good financial records aren’t just for tax. They’re crucial for budgeting, decision-making, and fundraising. Whether you’re doing it yourself with cloud software or using a bookkeeper, getting this in place early avoids stress at year-end.
7. Draft the Basics: Agreements and Governance
If you have co-founders, investors, or employees, take time to set up key documents: shareholder agreements, employment contracts, NDAs, or service-level agreements. These protect everyone involved and avoid future disputes.
Starting a business is more than a good idea and a Canva logo: it’s about laying a strong foundation. These compliance steps can feel small, but they build long-term credibility, unlock financing, and protect you from legal and tax surprises.