Starting a company is one of those “big leap” moments — exciting, a little scary, and full of possibilities. But the truth is, getting the admin right from the start can save you months of headaches later.
Whether you’re turning a side hustle into a proper business, or launching a full-on brand, here’s a friendly step-by-step guide to help you register your company, set up your taxes, and keep your finances organised.
1. Register Your Company with the CIPC
This is where your business becomes official. The Companies and Intellectual Property Commission (CIPC) is where every South African company begins its journey.
Steps to follow:
- Go to https://bizportal.gov.za — the official CIPC portal.
- Create a CIPC Customer Account – This is where you will transact with CIPC
- On the home page, choose “Register a New Company”.
- Choose a name and check if it’s available on CIPC or BizPortal.
- Register your company (typically a Private Company (Pty) Ltd).
- Receive your registration certificate (CoR14.3).
- Keep your details updated — if you add or remove directors, you can do this via the CIPC Portals.
Insight:
Think of this step as naming and “birthing” your business. Once you’ve got that registration number, your company exists as a legal entity — it can open a bank account, enter contracts, and own assets.
2. Get Your SARS Registrations in Order
Once your company is registered with CIPC, it’s time to meet the next key player — SARS (the South African Revenue Service). Every registered company must have its own tax profile, but here’s some good news: you don’t always have to apply separately for a tax number anymore.
How it works:
- Automatic tax number: When you register your company through CIPC (especially via BizPortal), SARS automatically creates a Income Tax Reference number for your new business. This usually happens within a few days after your CIPC registration is approved. You’ll receive an email or SMS with the tax number — or you can check directly on SARS eFiling.
- Confirm on eFiling: Log in or create a profile on SARS eFiling. Under Tax Types → Income Tax (ITR14), check that your new company’s tax number appears correctly.
Register as the Company’s Registered Representative
Even though your company automatically gets a tax number, SARS still needs to know who represents it legally. This person (usually the director) must be appointed as the Registered Representative.
Here’s how to do it:
- Go to the SARS Online Query Sytem.
- Select Register Registered Representative.
- Follow the prompts.
- SARS will prompt you to upload the director’s ID, proof of address, and CIPC registration certificate (CoR14.3).
- You can link your company’s tax profile to your eFiling but going to “Organisations” and “Register New”.
- Once approved, you can activate the registered representative on SARS eFiling.
- You’ll then have full access to manage the company’s returns, VAT, PAYE, and other tax types.
Insight:
Think of this as telling SARS, “I’m the one authorised to speak for this business.” Without it, you won’t see your company on your eFiling dashboard or be able to submit anything on its behalf.
Other Important SARS Registrations
Once you’re linked as the registered representative, add the other relevant tax types:
- VAT – Register once annual turnover exceeds R1 million (or voluntarily if you’d like to claim input VAT).
- PAYE, UIF, and SDL – Required if you hire employees.
- Provisional Tax (IRP6) – Compulsory for companies; submit twice yearly (usually August and February).
Insight:
Getting these set up early avoids that scramble when your first EMP201 or VAT return suddenly comes due. Once your eFiling dashboard is active, everything from VAT to PAYE can be managed from one place.
3. Set Up Accounting the Right Way (From Day One)
This is the foundation of everything. A proper accounting setup keeps you in control — not guessing.
Steps to follow:
- Pick cloud accounting software (like Sage Business Cloud, QuickBooks Online, or Xero).
- Create a chart of accounts that fits your business model (sales, costs, VAT, assets, etc.).
- Set up your bank feed for automatic reconciliation.
- Record transactions regularly, not just once a year.
- Store documents digitally for audits (SARS can request up to 5 years back).
Why you should involve a qualified accountant
It’s strongly advised that you get a qualified accountant or registered tax practitioner to set up your books and accounting system.
They’ll make sure:
- All VAT, payroll, and SARS compliance settings are correct.
- Your chart of accounts follows best practice and aligns with reporting standards.
- You’re claiming legitimate tax deductions — and not missing out on any.
- Your financial statements meet Companies Act requirements when it’s time for annual submissions.
Insight:
Don’t wait until year-end to “do the books.” Ongoing accounting gives you clarity — you’ll actually know if you’re making money instead of finding out after the fact.
4. Hiring? Do PAYE, UIF, SDL and COIDA Properly
If you plan on hiring even one person, a few extra registrations come into play.
Steps to follow:
- Register for PAYE (Pay-As-You-Earn) — required once you have employees.
- Register for UIF — mandatory for anyone working more than 24 hours a month.
- Register for SDL — once your total annual payroll exceeds R500,000.
- Register for COIDA (Workman’s Compensation) — to cover staff injuries at work.
Insight:
Think of this as setting up a safety net — for you and your employees. It’s not the most glamorous task, but it’s the one that keeps your team (and your business) protected and legit.
5. Open a Business Bank Account
Once your company is registered and you’ve got your tax number, open a dedicated business bank account.
You’ll need:
- CoR14.3 (your CIPC registration certificate)
- Company income tax number
- ID and proof of address for all directors
- Proof of business address
- Company resolution authorising the signatory
Insight:
Keeping personal and business money separate makes your life 100x easier — especially when you need to show SARS (or investors) your numbers.
6. Your Ongoing Compliance Calendar
Once you’re up and running, your business has recurring responsibilities.
What to track:
- Monthly:
- EMP201 submissions – PAYE/UIF/SDL submission to SARS.
- VAT201 submissions – usually every 2 months (monthly for larger vendors).
- Separate UIF declarations via the uFiling portal – this is in addition to the UIF payment on your EMP201. The Department of Employment and Labour requires a detailed monthly return showing each employee’s earnings and contributions.
- Bi-Annually:
- Provisional Tax (IRP6) submissions – due by 31st August and last day of February each year.
- EMP501 Submission – This is a reconciliation of the PAYE/UIF/SDL that was paid to SARS relating to the earnings of your employees.
- Annually:
- File your Company Income Tax Return (ITR14).
- Submit your CIPC Annual Return.
- Renew your COIDA Return of Earnings (ROE).
- Prepare Financial Statements.
Insight:
These aren’t just boring checkboxes — they keep your company “alive” in the eyes of SARS and CIPC. Missing one can get you deregistered or fined (and that’s a nightmare to fix).
Common Mistakes to Avoid
Even the best entrepreneurs slip up. The trick is learning from other people’s mistakes.
Watch out for:
- Using your personal account for business expenses.
- Forgetting your CIPC Annual Return.
- Waiting too long to register for VAT.
- Ignoring payroll registrations when you start hiring.
- “Fixing the books” only at year-end instead of monthly.
Insight: A little organisation each month saves you a lot of panic later.
FAQs
Do I need to register for VAT immediately?
Not unless you reach R1 million in 12 months — but you can register voluntarily if it benefits you and your business earnings is above R50 000.
When must I register for PAYE?
Within 21 business days after paying employees who qualify for PAYE.
Can I start trading before all this is done?
Yes, but get your registrations in order quickly — it’s much harder to catch up later.
Need Help Getting Started?
If you’d rather focus on growing your idea while someone else handles the admin — we’ve got you.
Contact DB Financial Consulting and let us help you register your company, set up your accounting system, and stay compliant from day one.
Your focus should be on building your dream, not battling paperwork.
