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Before you start a company
Should I register a company?
Should I register a company?

Do I have to register my company?

Updated over a week ago

Your business should be registered because it gives your brand credibility and protects your intellectual property. If you plan on seeking funding or government assistance, being a registered business is vital.

If you want to register a company, here are some facts you would need to know

1. Why should I register my company?

People trust registered companies more.

People trust registered companies more, as it’s registered on formal, regulated and trusted government databases such as the CIPC and SARS.

The funding/Investment part of it.

Being formally registered allows you to apply for business loans or investments, and to take on shareholders, and to make use of the various funding and investment sources available to Private Companies – (FYI here is an article we wrote about business funding: How to apply for Business Funding in South Africa

Bidding for tenders

You can only bid for a government tender if you’re a registered company, as sole-proprietorships are not allowed to apply for tenders.

Remember - If you trade as a sole proprietorship you would also carry all of the risk and responsibility of the business, but luckily a Pty(Ltd) is seen as a separate entity and thus you will only have limited liability.

Here’s one of our other blogs with more information regarding the benefits of registering a Pty(Ltd) company:

2. When should I register a company?

You would have to register your company as soon as you start trading on a daily basis, get employees and want to apply for tenders or contracts.

The sooner you register your company, the sooner you can start applying for tenders, get work and get your compliance in order to make sure your bid for a tender/contract will be successful.

3. Are there benefits to registering a company?

Protects your brand.

Your company details and name will be registered at the CIPC department, thus ensuring that no other company or person will try to register it without your permission.

Easier to transfer your business.

It will be easier to transfer your company ownership to another partner or to your children.

You would only have to change the directorship, but all of the company information and assets will stay the same.

4. What is the best type of company?

That would totally depend on what type of business you’d like to do, here’s an article with more information:

A PTY LTD is a general purpose company and may offer any services of your choice.

You should register a company if you answer YES to at least one of the following questions:

  • Do you want to apply for tenders?

  • Do you want to have LIMITED liability in a company?

  • Do you want people to see you as a legitimate registered company, or as an informal one man show?

  • Do you want an easier time applying for funding?


  • Who can register a South African company?

    Any South African citizen or foreign persons that are over the age of 18.

  • What documents will I need to register a company?

    A valid ID Document or Passport (For Foreigners).

  • How long does it take to register a company?

    Once your application is submitted you will receive your new company within 5 - 7 working days.

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