What to know before starting a business in South Africa
The rise of highly successful start-ups and entrepreneurs in the last few years have led to many South Africans wanting to start their own small businesses. Unfortunately, for many, the journey ends with the idea of being an entrepreneur, because the process of registering a business in South Africa may seem too complicated and expensive. But is this really true? Or is it simply this preconceived idea that’s leaving potential entrepreneurs with broken dreams.
When starting a business, you need to have certain documents and structures in place, however, the process is not a complicated one. Anyone with a valid identification document can start a business in South Africa and with the right guidance, the registration process should be an effortless experience.
Do you really need to register a business in South Africa?
Yes. No matter the size of your company or the amount of profit your business makes, registering it can offer numerous legal benefits, such as asset protection and the ability to raise equity capital, and will simplify admin processes in the future.
Which types of companies can register in South Africa?
Profit, non-profit, public and private companies can all be registered in South Africa.
Is the process of registering a business in South Africa really that complicated?
Not at all. If you follow the correct steps, your business can be registered in just a few days.
What are the steps to register a business?
Start by reserving a name for your business
It is important to choose a unique name for your business; one that has not yet been registered. You should also secure the domain name of your business. This will give credibility to your business and reserve the space online for when you are ready to launch a website.
You can easily search for names on 1-grid’s website. Simply scroll to the search bar, type in your ideal name, as well as two alternatives, and press search.
Have the right documents?
Many people think that you need a stack of documents to register a business, but this is not the case. With ShopShipShake, you simply need the following:
Please read the guidance for beginners: https://bit.ly/2XfMNYl
Advanced guidance: This guidance will help you to learn how to purchase on SSS: https://bit.ly/2Pca497
It’s that simple.
When starting a business, should I have a bank account?
Having a bank account for your business is a SARS requirement. A business bank account will ensure that personal and business transactions are separated for better bookkeeping.
Starting a business in South Africa is not as complicated as you may think. With the right guidance and advice, you can register your new business in just a few days and reap the benefits thereof.