To start a small business in South Africa you register the business (a company is registered online on BizPortal for R125 without a name or R175 including a name), open a business bank account, register for employer obligations once you hire, and register for VAT only when your turnover requires it. Companies then file an annual return and beneficial ownership information every year.
The sections below separate registration, which you do once, from the compliance that continues for as long as the business trades.
Business Requirements at a Glance
- Legal form: decide between operating as a sole proprietor or registering a company, and check municipal zoning before you sign a lease.
- Company registration: R125 without a name, R175 including a name, on BizPortal, with no documentation required.
- Tax: every company registered through BizPortal is automatically registered with SARS for tax.
- Bank account: open a business account once the business is registered, or in your own name if you stay an unregistered sole proprietor.
- Employees: UIF, the Compensation Fund and PAYE registration apply once you employ people.
- VAT: compulsory above R2.3 million in turnover from 1 April 2026; see the SARS VAT page.
- Every year: annual return and beneficial ownership declaration for companies.
Registration and Legal Requirements
Companies are registered online through BizPortal, the CIPC portal. The fee is R125 without a name and R175 including a name, and no documentation is required to register. Registration also registers the company with SARS for tax automatically.
A sole proprietor does not register a company. Without registration the business is not separate from you, and a bank account is opened in your own name because you are personally responsible for the business.
Registering a company name does not on its own give you trade mark rights. Zoning, health approvals and similar sector or municipal licences are separate from company registration and are set by the relevant authority or municipality, so confirm what your activity needs before you commit to premises.
Documents and Ownership Information Required
What you need depends on the step and on whether you trade as a company or a sole proprietor.
- Company registration: BizPortal states that no documentation is required to register.
- Company bank account: Nedbank asks for the original green-barcoded or smart ID of every company director, and the company registration details (CK2) for an account in the company name.
- Sole proprietor bank account: Absa lists proof of the physical business address (an affidavit if you have none) and does not require company registration documents from sole proprietors. Where more than one person signs, a company resolution is needed.
- Ownership information: companies must file beneficial ownership information with the CIPC; see the CIPC beneficial ownership page.
- Municipal licences: documents depend on the municipality and the activity, so ask your municipality for its list.
Individual banks set their own checklists, so confirm the list with the bank you choose before you visit a branch.
Tax, Licence and Compliance Requirements
VAT. From 1 April 2026 registration is compulsory when turnover passes R2.3 million (previously R1 million) and voluntary above R120 000 (previously R50 000). Check the SARS VAT page for the current position.
Turnover tax. Micro businesses with qualifying annual turnover of R2.3 million or less can use turnover tax, which replaces income tax, VAT, provisional tax, capital gains tax and dividends tax. Sole proprietors, partnerships, close corporations, companies and co-operatives may qualify.
Provisional tax. Anyone who receives income other than remuneration is a provisional taxpayer, which applies to many sole proprietors.
Employer registrations. An employer must register with SARS for PAYE within 21 business days after becoming an employer, unless none of the employees are liable for normal tax. You must register with UIF and contribute if you employ people for more than 24 hours a month; the contribution is 2% of gross salary, 1% deducted from the worker and 1% paid by you. You can register with UIF through the government service page, but a company with no employees cannot register. The Compensation Fund registration is also required after you appoint employees; the Department of Employment and Labour sets the timing.
Licences. Food premises, for example, need a certificate of acceptability from the municipality, and municipal business licences commonly ask for zoning approval. Requirements differ between municipalities.
Process, Deadlines and Ongoing Obligations
- Companies must file an annual return, a beneficial ownership declaration and the securities or beneficial interest register each year within 30 business days after the anniversary of incorporation.
- A newly incorporated company must file its beneficial ownership information within 10 business days of incorporation.
- Amended beneficial ownership declarations are due within 10 business days of any change.
- Employer registrations must be in place when you hire: PAYE within 21 business days, UIF from the point you employ people for more than 24 hours a month.
- Provisional tax and VAT returns follow SARS’s schedule once you are registered.
Frequently Asked Questions
What are the small business start up requirements in South Africa?
Register the business (a company through BizPortal), open a bank account, register for PAYE, UIF and the Compensation Fund when you hire, register for VAT when turnover requires it, and file the annual return and beneficial ownership information each year.
How much does it cost to register a small business?
Company registration on BizPortal costs R125 without a name and R175 including a name. A sole proprietor does not pay a registration fee because there is no company to register.
Do I need to register for VAT?
Only above R2.3 million in turnover, from 1 April 2026. You may register voluntarily above R120 000.
Do I need UIF registration if I have no employees?
No. A company with no employees cannot register for UIF on BizPortal. Once you employ people for more than 24 hours a month, you must register and contribute.
When must I file beneficial ownership information?
Within 10 business days of incorporation, again within 10 business days of any change, and with the annual return each year.
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.