Close Corporation Registration – Get Your Business Registered Quickly and Easily!

So how do I register a Close Corporation in South Africa?

Registering your Close Corporation is probably the most exciting aspects of establishing a business for the first time. CC registration in South Africa is unbelievably easy when you have all the necessary information at hand and it can take no more than a couple of minutes to complete the online cc registration form. In this post I will quickly explain the requirements and steps involved in registering your CC online.

Requirements for registering a CC: Certain legal documents need to be completed and signed when registering a close corporation in South Africa. The most important of these documents is called a Founding Statement.

The details required for completion of a Founding Statement for a CC is listed below.

1. Full name of the Close Corporation.
2. Street address of the CC.
3. Postal address of the CC’s registered office.
4. Principal activity of the CC.
5. Date on which the financial year ends.
6. Full names and identity numbers of each member.
7. Interest expressed in percentage of each member.
8. Each members’ contributions to the CC.
9. The Founding Statement of the CC needs to be signed by every member.
10. An accounting officer must be appointed to the CC as he will draw up the financial statements
11. The name and address of the accounting officer of the CC.
12. Once completed the Founding Statement is sent to the Registrar of Close Corporations.
13. The Registrar of Close Corporations will then issue a Certificate of Incorporation and a Registration number once approved. A copy of the Certificate of Incorporation will be kept by the Registrar, another copy is sent to the Close Corporation and a third copy is sent to SARS (South African Revenue Services) to register the business for tax purposes.
14. Once the Certificate of Incorporation has been issued the CC may commence business.

Process of registering a CC: In South Africa there are different types of business entities. For the purpose of this article we will focus on the formation of a close corporation. This type of entity is less formal than a company and is preferred by entrepreneurs because they are very cost-effective to set up with less legal requirements.

The Process of registering a CC in South Africa is listed below.

1. Decide on a business name. Once the proposed business name is approved, it is reserved for two months and no one else can use the reserved name during that time.
2. The reserved name can be extended at a cost of 20 ZAR per month.
3. Submit three copies of the Founding Statement (CK1) to CIPRO. The info required on this form is stated earlier and the cost is 100 ZAR.
4. Include a CK2A form, which is used to formally appoint an accounting officer.
5. Register with the South African Department of Labour for unemployment insurance purposes. These forms are available at the Department of Labour in South Africa. Once the application is approved, a reference number is issued and the CC can start doing business.
6. Open a business bank account at any South African bank. For this you will need submit evidence of the members of the CC and the founding statement thereof. Opening an account at a South African bank is free and only takes a few days.

Tips: It is a good idea to have a few names for your CC as your first choice might not be available or is rejected by the Registrar. If you need to have your business registered formally ASAP, then you need to register it NOW as the time it takes to register your CC is totally dependent on the workload of the Registrar in South Africa.

Conclusion

Registering a business in South Africa is quick, affordable and easy with online CC registration forms. Once you have completed the electronic application form, you simply need to pay the cost for registration and receive your certificate of incorporation via email. That’s it, you’re done!

All the best for your new business!

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