Beyond registration and tax, a business has legal duties to the people it employs, the customers it sells to and the personal information it holds. The main ones are minimum wage and employer contributions, consumer protection rules and data protection under POPIA.
This page sets out the legal requirements of a business in South Africa that go beyond registering it, using the official sources for each. Starting a company is a separate step: see the registration section below.
Business Requirements at a Glance
The obligations that apply beyond registration and tax.
- CIPC filings — annual return and beneficial ownership each year for a registered company
- National minimum wage — R30,23 per ordinary hour from 1 March 2026
- UIF — 1% from the employee and 1% from the employer
- Compensation Fund return of earnings — filed annually by employers
- Employment equity — duties for designated employers with 50 or more employees
- Consumer Protection Act — rules on direct marketing, returns and quality of goods
- POPIA — an information officer registered with the Information Regulator
- Business licences — for example for selling meals or perishable foodstuffs
Registration and Legal Requirements
Companies are registered through BizPortal, which at the time of writing lists R125 without a name reservation and R175 including a name. Once registered, the company must file its annual return, beneficial ownership declaration and securities or beneficial interest register each year within 30 business days after the incorporation anniversary. A company that is not up to date on beneficial ownership cannot finalise its annual return and risks penalties or deregistration. See the CIPC beneficial ownership page.
Minimum wage. The Department of Employment and Labour announced an increase in the national minimum wage from R28,79 to R30,23 for each ordinary hour worked, effective 1 March 2026. See the ministerial statement.
Employment equity. Since the Employment Equity Amendment Act came into force on 1 January 2025, employers with fewer than 50 employees are non-designated and no longer submit EE reports. Designated employers, those with 50 or more employees and organs of state, must prepare and implement an EE plan for 1 September 2025 to 31 August 2030, aligned with the sector targets. See the Department of Employment and Labour’s notice to designated employers.
Other employment law. Contracts, working hours, leave, notice and dismissal are governed by the Basic Conditions of Employment Act and the Labour Relations Act. Check the current text and guidance with the Department of Employment and Labour or the CCMA before you hire or dismiss.
Documents and Ownership Information Required
What a compliant business keeps.
- CIPC registration documents, company profile and beneficial ownership information as filed
- The securities or beneficial interest register
- Payroll records showing wages against the national minimum wage
- UIF and Compensation Fund registration and return of earnings records
- An employment equity plan, if you are a designated employer
- Your POPIA information officer registration confirmation
- Any business licence your activity requires
Tax, Licence and Compliance Requirements
UIF. The employer pays a total contribution of 2%: 1% deducted from the employee and 1% paid by the employer. SARS applies a monthly earnings ceiling of R17,712 (R212,544 a year).
Consumer Protection Act. Under the Act, a consumer may rescind a direct-marketing transaction without reason or penalty within five business days after the later of the date the transaction was concluded or the goods were delivered (this does not apply where section 44 of the Electronic Communications and Transactions Act applies). Within six months of delivery, a consumer may return goods that fail the Act’s quality standards without penalty, and the supplier must repair, replace or refund at the consumer’s direction. See the text of the Act.
POPIA. Information officers must be registered with the Information Regulator before they assume their duties, and public and private bodies register on the Regulator’s Information Officer Portal at inforegulator.org.za.
Business licences. Under the Businesses Act 71 of 1991, a licence is required to sell or supply meals or perishable foodstuffs to consumers and for certain health and entertainment businesses. Applications go through the local licensing authority, so ask your municipality what applies to your activity.
Process, Deadlines and Ongoing Obligations
Return of earnings. The Compensation Fund return is filed annually on ROE Online at cfonline.labour.gov.za. The window is set by notice each season (for the 2024 season it ran from 1 May to 31 July 2025), and later submissions attracted a 10% penalty on the final assessment. Check the notice for the current season.
Yearly review. Figures change: the minimum wage is reset each 1 March, SARS thresholds move with each Budget and ROE dates are set per season. Check each source again every year.
Frequently Asked Questions
What are the legal requirements for a business in South Africa?
Register the business, keep CIPC and SARS filings up to date, and meet employment law (national minimum wage, UIF, Compensation Fund returns), consumer law and POPIA. Employment equity and licences apply in some cases.
What are the legal requirements to start a business?
For a company, registration through BizPortal is the first step, followed by SARS registration for the taxes that apply to you. Anything beyond that depends on your activity, for example a licence to sell meals or perishable foodstuffs.
What is the national minimum wage in 2026?
R30,23 per ordinary hour from 1 March 2026, up from R28,79.
Does employment equity apply to a small business?
Not if you employ fewer than 50 people. Employers below that size are non-designated and no longer submit EE reports. Designated employers with 50 or more employees must have an EE plan for 1 September 2025 to 31 August 2030.
Does POPIA apply to a small business?
POPIA requires information officers to be registered with the Information Regulator before they take up their duties. Register through the Regulator’s portal and ask the Regulator whether your business is covered.
Can a customer return goods after buying?
Within six months of delivery, a consumer may return goods that fail the Consumer Protection Act’s quality standards without penalty. A direct-marketing purchase can also be rescinded within five business days. A “no refunds” policy does not take those rights away, so confirm your position with the National Consumer Commission.
Confirm current requirements with the CIPC, SARS, the Department of Employment and Labour, the Compensation Fund and the Information Regulator. See business and compliance requirements and browse company registration requirements.