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.
You might also be interested in
What is Dext receipt bank and why use it?
When it comes to supplier invoices and receipt management, many people will tell you that it’s one of the most loathed aspects of their business and keeping these are a huge headache. Needing to keep receipts in one place for eventual submission to accountants can...
What is meant by Accountants Taxation Services
Everyone wants to pay less tax. No one can dispute that. It’s an achievable goal for many, but there are two ways to do it, and only one of those ways has a guaranteed good outcome. (Hint: it’s also the only ethical way to do it!). You might be surprised at how much...
Spotlight Reporting integration with Xero
Spotlight Reporting is the award-winning reporting and forecasting application for the Xero Accounting Package. (Winner of the App Partner of the Year Award in 2015 and 2016) Fully customisable for all sizes of businesses, Spotlight It is integrated to work seamlessly...
With over 23 years of unwavering expertise, I am a seasoned Chartered Accountant committed to financial excellence. My journey in the realm of finance has been marked by astute strategic insights, meticulous attention to detail, and an unyielding dedication to precision. Over the years, I've navigated the complexities of financial landscapes, providing invaluable counsel to diverse clients. My proficiency extends across auditing, taxation, and financial management, coupled with a profound understanding of regulatory frameworks. As a registered professional, I have consistently upheld the highest standards of integrity and ethics, earning a reputation as a trusted advisor in the dynamic world of finance.
