Getting started - What you need to know before registering a new company

So you decided to take the plunge and start your own business. Whether this happened organically or within a formal structure, there are a few basic steps you need to take in order to lift your business off the ground. The first thing you need to do in order to begin day one trading is to register a new company. Here’s how:

Getting Started

What you need to know before registering a new company

 1. Think of a name

If you’ve planned every single detail of your venture (including the name), then this will pose no problem to you. If however, your creative juices aren’t flowing as well as you’d like them to this part of the process may prove more difficult than expected. When considering a name for your business it is important to remember that a name will be inextricably linked to the identity of your business, so best to get as much advice as possible before you make a final decision. The Companies and Intellectual Property Commission (CIPC) requires you to have at least 4 different name options, in case the one you had in mind is already taken – so get those creative juices flowing!

2. Think of the form of company and your directors

 As a small enterprise, you will either be profit making or non-profit making. Your options are:

 Private Company

• This is the most common form of company';

• The name of the company will end with “Pty (Ltd) or “Proprietary Limited”. This means that the law sees it as it's own legal entity, so shareholders cannot be held personally liable for any debt the company might incur during the course of doing business, or should the business fail;

• Only 1 director is required to Register a Pty Company;

• Each incorporator will become the first director of the new private company.

 Personal Liability Company

•  This is normally the form of company suitable for professionals such as Doctors, Accountants, Lawyers, etc;

• The name of the company will end with “Incorporated” or "Inc";

• Incorporated by 1 or more persons;

• The company, its directors (past/present) are jointly liable for all debts/liabilities incurred.

Non Profit Company Registration

·      The name of a Non-Profit Company will end with "NPC".

·      Incorporated by at least 3 persons for public benefit, social activities, communal or group Interest, etc.

·      Must have a minimum of 3 directors.

·      The primary objective is to be a benefit to the public and not to make profit.

·      Income/property may not be distributed to the incorporators, members, directors or officers.

3. Register your new company

This is where we come in. We handle the nitty gritty so that you can focus on what you know best.