To start a business in South Africa you choose a legal form, register a company on BizPortal if you want one (R125 without a name, R175 including a name), open a business bank account, register for employer obligations when you hire, and register for VAT only once turnover requires it. Licences depend on what the business does.
The sections below take these requirements in order, so you can see what is required, what depends on your situation and where to confirm it.
Business Requirements at a Glance
- Choose a legal form: sole proprietor or company.
- Register a company, if needed: BizPortal, R125 without a name or R175 including a name.
- Tax: companies registered through BizPortal are registered with SARS automatically.
- Bank account: a company needs its registration details and directors’ IDs; a sole proprietor can open one in their own name.
- Hiring: PAYE, UIF and Compensation Fund registration.
- VAT: compulsory above R2.3 million turnover from 1 April 2026; see the SARS VAT page.
- Government work: self-register on the Central Supplier Database.
Registration and Legal Requirements
A company is registered online on BizPortal for R125 without a name or R175 including a name, and no documentation is required. All companies registered this way are registered with SARS for tax automatically.
A sole proprietor needs no company registration. If you stay unregistered, the business is not separate from you and a bank account is opened in your own name.
Annual obligations start after incorporation: companies file an annual return, a beneficial ownership declaration and the securities or beneficial interest register each year within 30 business days after the incorporation anniversary. A new company files its beneficial ownership information within 10 business days of incorporation.
Documents and Ownership Information Required
- Company bank account: Nedbank asks for original green-barcoded or smart IDs of all company directors and the company registration details (CK2).
- Sole proprietor bank account: Absa lists proof of the physical business address (an affidavit if you have none), and no company registration documents.
- Several signatories: Absa asks for a company resolution.
- Beneficial ownership: declared to the CIPC; see the CIPC beneficial ownership page.
- Food premises: the City of Cape Town application for a certificate of acceptability asks for ID or passport, the company or CC registration certificate if applicable, premises particulars, food category, staff numbers and a layout plan.
Banks set their own checklists, so confirm with your bank before you apply.
Tax, Licence and Compliance Requirements
VAT: compulsory registration applies above R2.3 million (previously R1 million) and voluntary registration above R120 000 (previously R50 000), from 1 April 2026.
Turnover tax: micro businesses with qualifying turnover of R2.3 million or less can use turnover tax in place of income tax, VAT, provisional tax, capital gains tax and dividends tax.
Employer registrations: register with SARS for PAYE within 21 business days of becoming an employer, unless none of your employees are liable for normal tax. UIF applies if you employ people for more than 24 hours a month, at 2% of gross salary (1% from the worker, 1% from you). You must also register with the Compensation Fund after appointing employees.
Licences: these vary by activity and municipality. In Ekurhuleni, for instance, food businesses such as spaza shops are asked for a zoning certificate or written consent, a certificate of acceptability, an approved building plan and occupancy certificate, a title deed or landlord letter, ID, CIPC registration, a municipal account and SARS tax clearance. Ask your own municipality for its list.
Process, Deadlines and Ongoing Obligations
- Register the company, then open the bank account.
- Register as an employer when you hire: PAYE within 21 business days.
- Register for VAT when turnover requires it.
- Annual return and beneficial ownership each year within 30 business days after the incorporation anniversary.
- Report beneficial ownership changes within 10 business days.
If you want to supply government, suppliers are encouraged to self-register on the Central Supplier Database.
Frequently Asked Questions
What is required to start a business?
A legal form, a company registration on BizPortal if you choose a company, a bank account, employer registrations if you hire, VAT registration above R2.3 million turnover, and any licences your activity needs.
How do I start a business bank account?
A company needs its registration details and the original IDs of all directors (Nedbank). A sole proprietor opens an account in their own name; Absa asks for proof of the business address, or an affidavit if there is none, and no company documents. Other banks have their own lists, so ask yours.
How much does it cost to register a company?
R125 without a name and R175 including a name on BizPortal.
Do I need to register for VAT immediately?
No. VAT registration is compulsory only above R2.3 million turnover (from 1 April 2026) and voluntary above R120 000.
Do I need a CSD registration?
Only if you want to supply government. Suppliers are encouraged to self-register on the Central Supplier Database.
Requirements, thresholds and licensing differ by activity and are revised. Confirm current rules with the CIPC, SARS, the Department of Employment and Labour and your municipality. See company registration requirements and browse all business and compliance requirements.