Keeping a small business legal is mostly a calendar: registration happens once, but SARS, CIPC and the Compensation Fund each expect something on a recurring date. Missing one of them is how small businesses get penalised or deregistered.
This page lists the recurring obligations and the dates the official sources give for them, so you can plan the year. Which ones apply depends on whether you employ people, are registered for VAT and are a company or a sole proprietor.
Business Requirements at a Glance
The recurring obligations, by frequency.
- Monthly — the employer declaration (EMP201) and payment for PAYE, SDL and UIF, by the 7th of the following month, if you employ anyone
- Twice a year — the employer reconciliation (EMP501): an interim one for 1 March to 31 August and an annual one for the full year to end February
- Twice a year, plus an optional third — provisional tax payments, where you are a provisional taxpayer
- Annually — the CIPC annual return and beneficial ownership declaration, within 30 business days after the incorporation anniversary
- Annually — the entity’s income tax return
- Annually — the Compensation Fund return of earnings (ROE), in a window set each season
- When you cross the threshold — VAT registration above R2.3 million in taxable supplies over any 12 consecutive months (from 1 April 2026)
Registration and Legal Requirements
A company is registered through BizPortal, which at the time of writing lists R125 without a name reservation and R175 including a name, with no documentation required. Confirm the current fee on BizPortal before you apply.
The CIPC annual return is the one most often missed. Annual returns, beneficial ownership declarations and the securities or beneficial interest register are filed each year within 30 business days after the anniversary of incorporation. A company that has not filed its beneficial ownership information cannot finalise its annual return and risks penalties or deregistration. See the CIPC beneficial ownership page.
The CIPC annual return fee for a private company depends on turnover. The CIPC FAQ page lists R100 for turnover under R1 million, R450 from R1 million to under R10 million, R2,000 from R10 million to under R25 million and R3,000 at R25 million and above when filed within the 30 business days, and higher amounts when filed late. That table is undated, so confirm the amount on the CIPC annual returns system when you file.
Documents and Ownership Information Required
What a compliant business keeps on hand.
- CIPC registration documents and company profile
- Beneficial ownership information as filed with the CIPC, and the securities or beneficial interest register
- Identity documents for every director, member or partner
- Proof of the business address
- A SARS tax reference number and, where registered, your PAYE, UIF, SDL and VAT details
- A business bank account in the entity’s name
- Your Compensation Fund registration and return of earnings records, if you employ people
- Any sector licences or municipal permits your activity needs
Tax, Licence and Compliance Requirements
VAT. From 1 April 2026, registration is compulsory when your taxable supplies exceed R2.3 million in any consecutive 12 months, up from R1 million. Voluntary registration is possible from R120,000, up from R50,000. A compulsory application must be made within 21 business days from the date the threshold is or will be exceeded. See SARS on registering for VAT.
Employee taxes. UIF is 1% of remuneration from the employee plus 1% from the employer (2% in total), subject to a monthly earnings ceiling of R17,712. The Skills Development Levy is 1% of total salaries, and an employer only becomes liable when it expects total salaries over the next 12 months to exceed R500,000.
Provisional tax. The first payment is due within six months of the start of the year of assessment (31 August for a year starting in March) and the second no later than the last business day of February. A third top-up payment is voluntary.
Licences and permits. Municipal and sector licences are set by the relevant authority, so ask your municipality or sector regulator what applies and when it renews.
Process, Deadlines and Ongoing Obligations
EMP201. Submit the declaration and payment within 7 days after the end of each month, that is by the 7th. SARS explains the process on its EMP201 page.
EMP501. The interim reconciliation covers 1 March to 31 August and the annual one covers the full year to end February. Due dates are published in the Government Gazette, so check them each year.
Return of earnings. The Compensation Fund return is filed annually through ROE Online. The window is set by notice each season (for the 2024 season it ran from 1 May to 31 July 2025), and late submissions attracted a 10% penalty on the final assessment. Check the notice for the current season.
Provisional tax. See SARS on provisional tax for who must pay and how.
A simple routine works: put every due date in a calendar with a reminder a week earlier, and review each year whether a new employee, crossing the VAT threshold or a new activity has added an obligation.
Frequently Asked Questions
What are the legal requirements for a small business in South Africa?
Register the business (usually with the CIPC if it is a company), keep CIPC filings current, meet your SARS obligations such as income tax, provisional tax and the monthly EMP201 if you employ people, and register for VAT once you pass R2.3 million in taxable supplies.
What is the most commonly missed obligation?
The CIPC annual return together with the beneficial ownership declaration. Both are due within 30 business days after the incorporation anniversary, and non-compliance can lead to penalties or deregistration.
When do I have to register for VAT?
When taxable supplies exceed R2.3 million in any consecutive 12 months, from 1 April 2026. You can register voluntarily from R120,000. Apply within 21 business days of the date the threshold is or will be exceeded.
When is the monthly employer declaration due?
Within 7 days after the end of each month, that is by the 7th. If the 7th falls on a weekend or public holiday, pay by the last business day before it.
How often is the employer reconciliation done?
Twice a year: an interim reconciliation (1 March to 31 August) and an annual one (full year to end February). SARS publishes the due dates in the Government Gazette.
Do I need to pay SDL?
Only if you expect your total salaries over the next 12 months to exceed R500,000. The levy is then 1% of total salaries.
Confirm current dates, fees and thresholds with SARS, the CIPC and the Compensation Fund before you file. See business and compliance requirements and browse company registration requirements.