Start a Business
Explore everything about start a business at BizAnswers. This section brings together our latest guides, news and updates on start a business in South Africa, so you can find clear answers, practical tips and trusted information in one place.
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Sole Proprietor Tax in South Africa: The Complete Guide
Quick Answer Sole Proprietor Tax in South Africa: The Complete Guide A sole proprietor pays personal income tax on business profit at sliding scales up to 45% – the business is not taxed separately. You must register with SARS (it is not automatic), keep records for five years, file an ITR12 annual return, and usually pay provisional tax twice a year. Turnover Tax is an option under R2.3 million. How sole proprietor tax actually works There is no legal separation between you and the business. All profit is your personal income, taxed on the same tables as a salary – from 18% up to 45%. You pay tax on profit…
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How to Get a Spaza Shop Permit (Trading Licence) in South Africa
Quick Answer How to Get a Spaza Shop Permit (Trading Licence) in South Africa A spaza shop needs a business/trading licence from your local municipality under the Businesses Act, plus a health certificate if you sell food. Apply at the municipal licensing office with your ID, lease or landlord consent, and premises details. Fees are modest and set per municipality. What this means in plain language Spaza shops are real businesses in the eyes of the law: the Businesses Act 71 of 1991 requires a licence for selling food and certain goods, and municipalities add their own bylaws on zoning, hours and signage. Registration drives have tightened since the 2024…
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What Documents Does a New Business Need in South Africa?
Quick Answer What Documents Does a New Business Need in South Africa? A new South African business needs its CIPC registration certificate (CoR14.3), SARS income tax number, a business bank account letter, a B-BBEE affidavit (if under R10 million turnover), and industry licences where applicable. Together these open bank accounts, tenders and supplier accounts. What this means in plain language Think of it as your business’s ID book. Every door you will knock on – banks, funders, landlords, corporate clients, government – asks for the same core pack. Keep certified copies and digital scans together in one folder. When a tender or funding application appears, you respond in hours instead…
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What Must I Do After Registering a Company in South Africa?
Quick Answer What Must I Do After Registering a Company in South Africa? After CIPC registration, open a business bank account, activate the company on SARS eFiling, appoint a public officer within one month, file your beneficial ownership declaration, get a free B-BBEE affidavit if you qualify, and diarise your CIPC annual return and SARS deadlines. What this means in plain language Most new companies die from neglected admin, not bad business. The first 30 days set up everything that keeps you compliant, bankable and tender-ready for the life of the company. None of these steps cost much – most are free – but skipping them compounds: a missed annual…
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Pty Ltd vs Sole Proprietor: Which Is Better in South Africa?
Quick Answer Pty Ltd vs Sole Proprietor: Which Is Better in South Africa? A sole proprietor is free and instant but you are personally liable for business debts and pay personal tax up to 45%. A Pty Ltd costs R175 to register, protects your personal assets, pays a flat 27% company tax (less if it qualifies as an SBC), and is required for most tenders and funding. What this means in plain language The real question is risk and ambition, not cost. If the business can owe people money, sign leases or get sued, the Pty Ltd’s limited liability is worth the admin. If you are testing a side hustle,…
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How to Register a Company in South Africa (Step by Step, 2026)
Quick Answer How to Register a Company in South Africa (Step by Step, 2026) Register a company online at CIPC eServices or BizPortal: create a customer profile, optionally reserve a name (R50), complete the incorporation form (CoR14.1), pay R125 – R175, and receive your registration certificate within about 1-5 working days. SARS issues your income tax number automatically. What this means in plain language Company registration in South Africa is fully online. You no longer queue at CIPC offices – BizPortal even bundles UIF and Compensation Fund registration into the same application. The company is born the moment CIPC issues the CoR14.3 certificate. From that date it can open bank…
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How Much Does It Cost to Register a Company in South Africa?
Quick Answer How Much Does It Cost to Register a Company in South Africa? Registering a Pty Ltd company directly with CIPC costs R175 including a name reservation (R50 name + R125 registration), or R125 without a name. Using a registration service adds roughly R500 to R1,500. Ongoing costs include the annual CIPC return (from R100). What this means in plain language CIPC fees are legislated, so they are the same whether you file yourself on BizPortal or pay someone to file for you. What changes between providers is the service fee on top. Budget for the costs after registration too: a business bank account (monthly fee), the yearly CIPC…
