Starting a Pty Ltd in South Africa: The Complete Checklist

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Step 1 — Register with CIPC

A private company ((Pty) Ltd) is registered through CIPC: reserve a name (or register with the enterprise number as the name and add a name later), file the incorporation documents, and appoint at least one director. You'll receive a registration number and incorporation certificate — the document every bank and supplier will ask for.

Step 2 — Register with SARS

CIPC registration automatically registers the company for income tax with SARS. Depending on the business you may also need to register as an employer (PAYE/UIF/SDL) before your first pay run, for VAT (compulsory from R2.3 million of taxable supplies, voluntary from R120,000), and with the Compensation Fund (COIDA) if you employ anyone. Each registration has its own forms and processing time, so apply before you need it.

Step 3 — Open a business bank account

Open a dedicated business account immediately, even as a one-person company. Mixing personal and company money makes the books harder to keep and the tax harder to work out. Because a company is a separate legal person, it also creates legal risk for directors.

Step 4 — File the beneficial ownership declaration

Companies must file a beneficial ownership declaration with CIPC identifying who ultimately owns or controls the company, and keep it current. CIPC will not process an annual return for a company that has not filed it. File it at incorporation and update it when shareholding changes.

Step 5 — Diarise the annual deadlines

From year one, a Pty Ltd owes: a CIPC annual return in its anniversary month (miss it and deregistration proceedings eventually start), annual financial statements, an ITR14 company tax return, provisional tax twice a year, and — with staff — monthly EMP201s and two EMP501 reconciliations. Each of these has a fixed deadline, and late filing brings penalties.

Step 6 — Decide how you'll pay yourself

Salary, dividends, or both — each is taxed differently, and the right mix depends on your numbers. Dividends bear 20% dividends tax after the company has paid its income tax; salary is deductible for the company but taxed in your hands. Decide the mix when you set the company up, so payroll and dividends run correctly from the first month.

Our company set-up service

We handle all of the above as one package: registration, SARS, beneficial ownership, payroll set-up and the compliance calendar. See our company services.

Common questions

How long does registration take?

CIPC registration takes days once the name is approved and the documents are in. Opening a bank account and some SARS registrations take longer, so we run them at the same time.

Do I need a separate accountant and company secretary?

No. We cover the accounting, tax and company secretarial work (annual returns, registers, beneficial ownership) as one service.

Can a foreigner own a South African company?

Yes — shareholders don't need to be South African. At least one director will need the identity documentation CIPC requires, and banking KYC for non-residents takes longer, so allow for that in your timeline.

What does it cost to keep a company compliant each year?

Beyond our fixed fees, the statutory costs are modest — the CIPC annual return fee scales with turnover. Missing a filing can lead to penalties, deregistration proceedings and a frozen bank account.

Starting a Pty Ltd in South Africa