Small business requirements in South Africa depend on your legal form, your turnover, whether you employ people and what you do. A company must be registered with the CIPC, a sole proprietor does not, and both must deal with SARS. Employers add UIF, Compensation Fund and PAYE registration, and many trades need a municipal licence. VAT registration is compulsory above R2.3 million in taxable supplies from 1 April 2026.
Not every business needs every registration, and the order matters, especially where a bank or client asks for something you do not yet have. See the company registration requirements for the company route.
Business Requirements at a Glance
- CIPC registration if you trade as a company; online through BizPortal for R125 without a name or R175 including a name, with no documentation required
- SARS tax registration: automatic for companies registered through BizPortal, and through personal income tax for a sole proprietor
- A business bank account, separate from your personal accounts
- UIF and Compensation Fund registration if you employ anyone
- PAYE registration with SARS within 21 business days of becoming an employer, unless none of your employees are liable for normal tax
- VAT registration, compulsory above R2.3 million in taxable supplies and voluntary from R120 000, from 1 April 2026
- Municipal licences and certificates where your activity requires them
Registration and Legal Requirements
Do you need to register a small business? A company must be registered with the CIPC. A sole proprietor does not need company registration documents, which is why Absa’s and Nedbank’s business account pages do not ask sole proprietors for them. The trade-off is that you are personally responsible for the business. A sole proprietorship is the simplest form of small business, with the account held in your own name if you stay unregistered.
Company registration. BizPortal, brought to you by the CIPC, registers new companies for R125 without a name and R175 including a name, with no documentation required. Every company registered there is automatically registered with SARS for tax.
Turnover tax can suit the smallest businesses. It replaces income tax, VAT, provisional tax, capital gains tax and dividends tax for micro businesses with qualifying annual turnover of R2.3 million or less, and sole proprietors, partnerships, close corporations, companies and co-operatives may qualify. See the SARS turnover tax page.
VAT. From 1 April 2026 the compulsory registration threshold rose from R1 million to R2.3 million and the voluntary threshold from R50 000 to R120 000. SARS’s VAT page still carries some of the older wording alongside the increase, so use the 2026 figures and check eFiling when you register.
Documents and Ownership Information Required
- Original green-barcoded or smart IDs of all company directors, as Nedbank asks for a business account
- The company’s registration details (CK2) for an account in the company name
- Proof of the business’s physical address; Absa’s BizStart account asks a sole proprietor for an affidavit if there is none
- A company resolution where there is more than one signatory (Absa)
- Your SARS tax reference number
- Proof of ownership or shareholding for a company
For the bank requirements, see Absa’s BizStart account and Nedbank’s guide to getting a business account. Banks set their own lists, so ask yours.
Tax, Licence and Compliance Requirements
Provisional tax. SARS treats anyone who receives income other than remuneration as a provisional taxpayer, which includes sole proprietors.
CIPC annual returns and beneficial ownership. Companies must file an annual return, beneficial ownership declarations and the securities or beneficial interest register each year within 30 business days after the incorporation anniversary. A newly incorporated entity files beneficial ownership information within 10 business days of incorporation, and an amended declaration is due within 10 business days of any change. See the CIPC’s beneficial ownership page.
Employers. You must register with UIF and contribute if you have employed people for more than 24 hours per month; the contribution is 2% of gross salary, with 1% deducted from the worker and 1% paid by you. UIF and Compensation Fund registration through BizPortal are free, but a company with no employees cannot register. The Department of Employment and Labour says an employer must register with the Compensation Fund within 7 days after appointing an employee. The National Minimum Wage rose from R28.79 to R30.23 per hour from 1 March 2026.
Business licence and health certificate. There is no single national small-business licence. Municipalities issue business licences for defined trades after zoning, health and fire or building checks. For food handling, the health document is the certificate of acceptability issued by the municipality under Regulation 638. Ekurhuleni lists an application form, a zoning certificate, a Certificate of Acceptability, a building plan and occupancy certificate, CIPC registration and tax clearance, among others. See the City of Ekurhuleni notice.
Insurance. General business insurance is not something the CIPC or SARS require. The statutory cover that applies to employers is Compensation Fund registration. For optional cover such as medical or group health plans, get quotes from licensed insurers and compare them.
Process, Deadlines and Ongoing Obligations
How to get a small business licence. Establish whether your activity needs one, confirm zoning for your address, get a Certificate of Acceptability if you handle food, then submit the application with the municipality’s document list to its business licensing section. Lists differ between municipalities such as Ekurhuleni and Tshwane.
Order of registration. Register the company first (SARS follows automatically), then open the bank account, then register as an employer when you hire, and VAT when your supplies pass the threshold.
- Choose your legal form
- Register the company on BizPortal, if you are using one
- Open a separate business account
- Register for UIF and the Compensation Fund when you hire
- Register for PAYE within 21 business days of becoming an employer
- File CIPC annual returns and beneficial ownership declarations on time
- Check municipal licensing before you sign a lease
Frequently Asked Questions
Do I have to register a company?
No. You can trade as a sole proprietor, but you are then personally responsible for the business. A company costs R125 to R175 on BizPortal.
Is a sole proprietorship a small business?
Yes, it is the simplest form of small business. It needs no CIPC registration, and business income is declared in your own tax return.
How do I get a small business licence?
There is no single national licence. Apply to your municipality’s business licensing section with its document list, and ask what your activity needs. Food premises also need a Certificate of Acceptability.
When must I register for VAT?
VAT registration is compulsory above R2.3 million in taxable supplies and voluntary from R120 000, from 1 April 2026.
Do I need a health and safety certificate?
For food handling, the municipality issues a certificate of acceptability under Regulation 638. Other health and safety duties depend on your trade, so ask your municipality.
What insurance is compulsory for a small business?
Compensation Fund registration applies when you employ people. Beyond that, cover is your choice, so compare quotes from licensed insurers for the cover you want.
What happens if I do not file CIPC annual returns?
Annual returns, with beneficial ownership declarations, are due each year within 30 business days after the incorporation anniversary. Confirm the consequences of late filing with the CIPC.
Thresholds, fees and deadlines are set by SARS, the CIPC, the Department of Employment and Labour and municipalities, so confirm them before you rely on them. See the business and compliance requirements hub and the company registration requirements guide.