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Starting a business in South Africa

CIPC registration in days with SARS attached automatically - the thinking is in the VAT line, turnover tax, and what tenders will ask for.

Gegen die Quellen geprüft am 2026-08-30

Dieser Guide ist noch nicht übersetzt - du liest das englische Original.

Before anything else

A South African sole proprietorship needs no registration at all - trade begins, and profit lands in your personal SARS return with provisional tax twice a year. The Pty Ltd registers at the CIPC (or through the BizPortal front end) for under R200, no minimum capital, and arrives with its SARS income-tax number already issued - the integration that makes the process genuinely painless.

What deserves planning: VAT registration is compulsory only at R1,000,000 of twelve-month turnover (voluntary from R50,000); the turnover-tax regime offers micro businesses under R1M a simple sliding levy instead of the full system; and anyone selling to government or large corporates will meet B-BBEE paperwork - for small businesses mostly a sworn affidavit, not the full scorecard.

The legal shell

Sole proprietor or Pty Ltd?

Sole proprietor

Simple start, low risk.

R0.

Personal liability and personal marginal rates to 45%; provisional tax deadlines are yours to remember.

Pty Ltd

Contracts, growth, separation.

~R125-175 via CIPC/BizPortal.

27% corporate rate plus dividends tax on extraction; CIPC annual returns (with fees) keep it alive, and lapsing them deregisters the company with the bank account attached.

The sequence

  1. Register at CIPC / BizPortal

    Wo: bizportal.gov.zaKosten: ~R125-175Dauer: Days

    Name reservation plus incorporation in one flow; the SARS income-tax registration comes bundled, and BizPortal can add a bank account application, domain and B-BBEE affidavit in the same sitting.

  2. Set up the SARS relationship

    Wo: eFiling

    Provisional tax runs twice-yearly for individuals and companies alike. Small business corporations (SBC) get preferential graduated rates if they qualify; the micro turnover tax replaces the lot under R1M for those who elect it.

  3. VAT when the line demands

    Compulsory at R1M rolling turnover, voluntary from R50,000. B2B service exports and the usual digital-services rules apply; the 15% rate has been politically contested - check the current figure.

  4. The employment add-ons

    PAYE, UIF and SDL register together at SARS with the first employee; COIDA (workers’ compensation) registers at the Department of Employment and Labour. None applies to the solo founder without staff.

What it costs to start

WasBetrag
Sole proprietorR0
Pty Ltd~R125-175
CIPC annual returnBy turnover; skipping it deregisters the company.R100-450/year
AccountantCustomary for companies.R500-2,000/month

The words on the forms

CIPC
The companies commission.
BizPortal
The one-stop front end bundling company, tax, bank and B-BBEE.
SARS / eFiling
The revenue service and its portal.
Provisional tax
The twice-yearly prepayment cycle.
Turnover tax
The micro regime under R1M.
SBC
Small business corporation - the preferential rate table.
B-BBEE affidavit
The empowerment paperwork small businesses satisfy by sworn statement.

The traps

  • Missing CIPC annual returns and losing the company by deregistration.
  • Provisional tax deadlines unmarked in the calendar.
  • Registering for VAT voluntarily while selling to consumers.
  • Assuming B-BBEE requires a consultant when an affidavit suffices below the threshold.

Where to check this yourself

  • BizPortalThe registration flow.
  • CIPCCompanies and annual returns.
  • SARSVAT, turnover tax, SBC rates.

Das hier ist eine Landkarte, keine Rechts- oder Steuerberatung - und eine ehrliche darüber, wie sie entstanden ist: Der Deutschland-Guide stammt von jemandem, der den Weg gegangen ist; die meisten anderen Länder wurden mit KI aus den offiziellen Quellen erstellt und noch von niemandem abgelaufen, der es getan hat. Gesetze ändern sich. Jeder Guide trägt das Datum seiner letzten Prüfung und die Quellen zum Selbst-Nachlesen - und wer einen dieser Wege hinter sich hat: Genau diese Korrekturen wünscht sich das Handbuch.