Whatever the nature and size of your business, new company registration is an essential step that offers a number of benefits. With the help of an experienced and professional secretarial service such as Henzel, the process does not have to be a challenge.
Why is new company registration so important, and what do you need to know before registering your company? Keep reading to find out how the process works, so that you have a better idea of what to expect.
Why Do You Need New Company Registration?
The top advantages of new business registration include the following:
- Business name protection. When you register your business, you are also ensuring that no other company is able to take your name. This is essential for full peace of mind in protecting your brand.
- Tax deductions. Registered businesses will have a far simpler time setting up tax, which, in turn, makes it easier to keep your accounts in order right from the very start.
- Financial assistance. Registering your business will also allow you to get your finances set up quickly and simply, with automatic taxpayer registration and easier access to PAYE and other services.
How Do You Proceed With New Business Registration?
New business registration is completed through the Companies and Intellectual Property Commission (CIPC), who replaced the Companies and Intellectual Property Registration Office (CIPRO) in May 2011. Under the New Companies Act, no new Close Corporations (CC) can be registered. Those registered before 1 May 2011 may still operate as CCs, however.
Each type of company will have specific documentation that is required for the registration. Types of business entities in South Africa include the following:
- Non-profit companies. These companies cater to public benefit or other objectives relating to one or more causes, communal or group interests.
- Profit companies. These businesses cater to various sectors, with the primary goal of making money. Most businesses fall under this type.
- Personal liability companies. Under these companies, directors and past directors are jointly liable for any debts arising during their time in office. This type of company name ends in ‘Inc’ or ‘Incorporated’.
- Public companies. These companies have issued securities through an IPO (initial public offering), trading on one or more stock exchange. These companies have over 50 shareholders, with shares that are offered to the public.
- Private companies. These companies are very similar to Close Corporations, comprising a board with at least one director. These companies have names that end in ‘Pty (Ltd)’ or ‘Proprietary Limited’.
Take the stress out of starting your new venture with the help of Henzel – your trusted company secretaries who are on standby to assist with new company registration and various other services.