Incorporation Registration

What is an Incorporation?

A Incorporation is basically the same as a private company which we know as Pty Ltd. However the Incorporation are exclusively used to register professionals such as accountants, lawyers and practises.

In the past for you to register an Incorporation you would need a practise number. However, that is not necessary anymore cipc will register your Incorporation without you having a practice number.

How do you register an Incorporation?

An Incorporation can either be registered with the Company intellectual Property Commission using their online website portal .Which is quite easy if you want to do it yourself. However not everyone has the patience or knowledge to do it themselves.

So I suggest to rather save yourself all that time and get a professional company to assist you like Swiftreg Company Registration.

What documentation will be required to register an Incorporation?

The documents that will be required to register the Incorporation will basically just be the green bar coded id document. If you are using the smart card, Company intellectual Property Commission (CIPC) will require the front and the back of the smart id card. Then depending on who will assist you with the registration be it  a professional company like Swiftreg Company Registrations or even an Accounting officer they will have their own requirements and documentation to be completed.

How long does It take to register an Incorporation?

The standard time frame can be from one to three weeks reason being when doing an Incorporation company, registration documentation normally get sent off manually to Company intellectual Property Commission (CIPC). Before the documentation get sent off to Company intellectual Property Commission (CIPC) the following must first take place.

You will first have to reserve a name for your company. Remember the name reservation is valid for six months and in that six month period you will have to register your company .If you do not register your company within the six month period. Your company name will be expired and you will have to start the name reservation process all over again.

Once the name is approved you have will have to compile the following documentation Cor9.4(approved name) ,Cor 14.1(Notice of Incorporation),Cor 14.1A( Notice of Incorporation to appoint directors of the company),Cor15.1B(Memorandum of Incorporation long standard form and the id documents of all the directors. With all those documents it will also accompany the Memorandum of Incorporation which has a minimum of five articles.

Do you have to register your Incorporation for Income Tax number?

No you do not have to register your Incorporation with South African Revenue Service (sars). Reason being Company intellectual Property Commission (CIPC) , Home affairs as well as SARS have combined their services which means when your company get registered you will receive a Income Tax number automatically from Cipc.

If you did not receive the income tax number no need to be worried. You can simply just contact South African Revenue Service call centre and they will provide you with the Income Tax number telephonically.

In the past all companies had to apply for an Income tax number once the company was registered. However South African revenue service has saved all entrepreneurs the trouble of standing in long lines for hours and issuing them income tax numbers automatically.

Will I receive a Tax Clearance when I register an Incorporation?

No when you do register your company you will receive a tax number automatically. However In order for you to obtain tax clearance you will have to apply for a tax clearance with South African Revenue Service (SARS). Or if you want to save alot of your time and all the paper work you can just get a professional company to assist you like Swiftreg Company registration.

Remember when applying for the tax clearance you have to open a business bank account as South African Revenue Service (SARS) they will require the business banking details. They will also need the income tax number for the company which was issued to you when your companies registration was done.

Must you apply every year for a tax clearance certificate?

Once you receive your tax clearance certificate weather you did it yourself or you had a professional company assist you to obtain one. Your tax clearance certificate will be valid for one year. Once you receive It the date until It is valid will be on the tax clearance certificate.

Remember tax clearance certificate is mainly to say that your company are clear from all taxes. Many cases when the company was registered and you apply for a tax clearance but the tax season has past the South African revenue service (sars) will ask you to submit your outstanding tax returns. Yes I know It is confusing Its a new company and here sars says you must submit tax returns but remember while you applied for the tax clearance  It was the tax season where all your tax returns has to be paid. If you feel you need assistance South African revenue service has a call centre that will be happy to assist you.

Can I apply for a bee certificate or bee affidavit for the Incorporation?

Yes you certainly can. All companies with a turnover of less than R50 million per year can use a BEE affidavit. Companies with an annual turnover of more than R50 million per year need to apply for BEE certificate. There is a few definitions you can also remember.

Companies turnover that’s less than R10 million per annum are also known as EME ( Exempt Micro Enterprice). Companies turnover thst is more than R10 million but less than R50 million are known as QSE (Qualifying small enterprise).

Does the bee certificate or the bee affidavit last forever or does it have to be renewed?

No unfortunately It does not last forever. The bee certificate or the bee affidavit has to be renewed every year. Once your bee affidavit or certificate is received the expiry date will be on the certificate which will state Its only valid for 12months.

Many organisations require companies to have a bee affidavit or bee certificate to do business with them. The higher the BEE level the better your chances are of getting the tender or even doing business with very big companies or even government organisations.

Must I pay any fees after Incorporation is registered?

Yes once the company is registered you will have to pay annual returns every year on your company anniversary date when your company has been registered. By paying your annual returns you will keep the company in an active status.

Which means that even if you do not conduct any business as long as you pay your annual returns your company status be active .However if you do not pay your annual returns your company will go into deregistration process and the company might just closed down.

Mostly clients get little confused with submitting annual returns and submitting your tax returns. Tax returns get submitted with South Africa revenue service. Annual returns get submitted with Company intellectual Property Commission (CIPC).

Can there be amendments done on the Incorporation after It has been registered?

Yes definitely once the company has been registered various changes can be done on the incorporation. You can do a director and share change on the company. If your address as well as your registered address has changed you can do a registered address change and a director change to change your physical address. If you added another director to your company and you want to amend the companies name you can certainly do that. This changes you can either do yourself or you can use a professional company like Swiftreg Company registration to assist you and believe me It will save you a lot of time.

Can there be unlimited directors and shareholders on a Incorporation?

Yes there can be unlimited directors on the company as well as share holders on the company .However if any director should wish to resign from the company as well as the share holders of the company they can do so.

Will I be able to apply for a Vat number once my company is registered?

In order for you to register for a Vat number your companies turnover should exceed R50 000 per annum. Reason being when your submit your application to south African revenue service .They want to see the amount reflect on the bank statements and invoices that must correspond that the business has reached that amount which is R50 000 or more. However once your companies turnover does reach a 1 million it will be compulsory for you to register for Vat number.

Will I receive share certificates once registration is completed?

It actually depends on who you do the registration with. If you are using a professional company like Swiftreg company registration they actually give you share certificates once your registration done.

However if you did your company registration elsewhere and you did not receive share certificates Swiftreg can issue share certificates to you as well by either using their online portal share vault or you can do the application manually. Now that is great service.

How much does it cost to register an Incorporation?

The price will vary from R1190 depending on who you do the registration with. Remember when you doing the application yourself with cipc the price will probably be less .However if you simply don’t have the energy and the time on your hands you can get a professional company to assist you.

The price will be more as they need to include their admin fee. When agents do certain services on cipc as well as professional companies they do get charged for each application or service they use on Company intellectual property commission (cipc) website.

> Does the Incorporation get registered with a standard Memorandum of Incorporation (MOI)?

Yes it does or you can customised your Memorandum of Incorporation(MOI).The memorandum of Incorporations is basically there to set out the rules the rights as well as the responsibilities of the shareholders within the company.

The standard memorandum of incorporation does not bring any justice to the rights the rules as well responsibilities of the share holders in your company you can apply with cipc or a professional company to customise your Memorandum of incorporation.

Are all registrations documents original that comes from Company intellectual property commission ( cipc)?

There is no original documents from Company intellectual property commission. With the new technology system Company intellectual property commission does not use the Docex like they use to in past when they do registrations. Remember in the past everything was done manually and you will receive your documents posted to you. However over the years Company intellectual property commission also known as cipc moved from manual submissions to online submission.

When registering your company online you will receive the documents in a digital format instead of posting the documents to the clients. So various companies like the banks and South African revenue service knows that documents get send to client in digital format which means they will not request original documents from you.

Can I apply for a similar name when doing a new registration for an Incorporation?

Yes you definitely can apply for a similar name .However if you have a company and want to register a new company with similar name with why Company intellectual property commission ( cipc). The only thing you have to do is you will have to write a letter stating that you as the previous company owner and that you and want to register a new company using a similar name.

The reason Company intellectual property commission advice clients to do this when applying for a similar name. In order for them to know that the company who rightfully own the previous name are applying for the similar name. However if you do not submit the letter with the id document of the director as well as the cor9.1 cipc will reject the  names you applied for because they simply won’t  know that you as the actual owner of the previous company that are applying for that similar name.

How does one go about trade marking your company name for an Incorporation?

Once you have submitted your companies names and one name has been reserved for you. You can simply start trade marking your name in order for no one else to apply for a similar name like your company name.

Remember when you trade mark your company name the registra looks at certain requirements before your trade mark is accepted. The name you trade mark must also be distinctive and it may not describe the goods and the services you applied for.

Once your trade mark is in the process you will receive the TM sign letting other consumers know that you are in the process of trade marking your company name. One your trade mark is done and you will see they will add the R and that symbol simply means that your company name has been trademarked.

Then you probably wondering for how long will your company name be trademarked. Well when you trade mark has been completed your trade mark registration will last up to ten years and It may be renewed for further periods of ten years.

Can foreigners also register an Incorporations?

Yes if you are a foreigner you can also register an Incorporation as long as you have a valid passport. When you a foreigner and you want to start a business registration in South Africa you will have to apply for a business visa .Most foreigners apply for the business visa which simply is for any foreigner that want to start a business In South Africa.