There are a few things more exciting than registering a new company. There are also few things fraught with less risk, and with fewer pitfalls. This is common knowledge to all entrepreneurs – right from the point of inception for a business.
What isn’t so clear from the start are the statutory requirements for all businesses – the rules of legal compliance in South Africa. These legal regulations apply to every stage of business – from setting up a business and doing business, right through to dissolving a business. One of the first pitfalls to avoid in business is ensuring that your new company is 100% legally compliant from the get-go, and that starts with correct, legally compliant registration.
To help you start off on the right footing, here are the basics of registering a new company:
New company registration – the SA statutory steps:
- Define the governing structure of the company. Who is the Director? Who, or what entity (e.g. a Trust) is the Incorporator? All private companies must have a Director and an Incorporator in order to be registered. In the case of small, ‘one-man’ businesses, the Director and Incorporator can be the same person or legal entity.
- Define the company structure, and so the type of Company and name. This should be done with a business tax consultant. This will help to ensure the best tax structuring for your company from the start, and avoid operational, tax and legal problems down the line.
- Obtain a SARS income Tax Number for the company.
- Draw up a Memorandum of Incorporation (MOI). This lays out the rules for shareholders. An MOI is still required, even if there only one shareholder. MOI’s can be ‘standard’ – as supplied by the Registrar, or they can be customised to include shareholder waivers or extra requirements.
- Submit the above, along with the registration fee, in an application to: South Africa Registrations
Registering a new company clearly involves more than just a name registration, but the process is simplified through the assistance of professional business, financial and tax consultants – ideally provided by a single consultancy.
TAT can assist from the first thought of your new company. Financials are of utmost importance for any new company and getting the registration, statutory regulations and financials done by a professional from the company inception will give you time to focus on what you do best, your business.
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