Starting a Small Business in South Africa: CIPC & SARS Guide
Starting a small business in South Africa involves two key players: CIPC and SARS. This guide simplifies their roles and how to interact with them.
Disclaimer: This is for informational purposes only and not financial or legal advice. Consult a professional for specific guidance.
CIPC vs. SARS: The Basics
CIPC (Companies and Intellectual Property Commission)
Your business's "birth certificate." CIPC handles company registration and compliance with the Companies Act.
SARS (South African Revenue Service)
The tax authority. SARS ensures your business pays the right taxes (corporate tax, VAT, PAYE).
Navigating CIPC: Your First Step
To trade as a company, register with CIPC.
1. Business Structure
Decide if you'll be a sole proprietor, partnership, or private company (Pty) Ltd.
2. Registering
Use CIPC's BizPortal. You'll register as a customer, then your company. You can reserve a name or use an enterprise number. You'll need certified IDs of directors.
3. Annual Return
Each year, submit an Annual Return to CIPC, confirming your company is active. Missed filings can lead to deregistration.
Visit: CIPC website
Navigating SARS: Your Tax Duties
Once CIPC-registered, SARS automatically issues an income tax number.
1. Registering with SARS
Your CIPC registration links you for corporate income tax. You might need to register for other taxes on SARS eFiling:
- PAYE: If you have employees.
- VAT: If your annual turnover is R1 million or more (optional if less than R1 million but over R50,000).
- Turnover Tax: A simplified system for businesses with turnover up to R1 million.
2. SARS Tax Returns
- Corporate Income Tax (CIT): All companies must file an annual return (ITR14).
- Provisional Tax: Companies usually pay estimated tax twice a year.
Visit: SARS website
Key Takeaways
- CIPC = Registration, SARS = Tax.
- Use online platforms: CIPC BizPortal and SARS eFiling are essential.
- Meet deadlines: Avoid penalties by filing CIPC annual returns and SARS tax returns on time.
- Seek professional help: Consider consulting with business advisors or accountants for guidance.
Naledi Leshakhe
Owner & Admin Manager