What is the turnaround time?
After we have received your documents, we submit the name reservation and thereafter – once a name has been approved – the actual registration application. CIPC service charter indicates turnaround time for a name reservation as 3 days and the company registration as 3 days from receipt of Power of Attorney and ID’s.
The process works as follows:
- After completing the online registration form insert link to online registration form you will be instructed to download the Power of Attorney insert link to the Power of Attorney download. Thereafter you will receive an email with a link to upload the Power of Attorney and Certified ID copy of each director. All directors must sign a separate Power of Attorney form (at the bottom of this page)
- In the meantime we submit your proposed names to CIPC for approval.
- Turnaround time is currently 3 working days to get feedback from CIPC on the names submitted.
- If name is approved we will e-mail you the name reservation document and submit final registration docs together with the Power of Attorney form to CIPC. (Note we can only proceed with this step once we have received the Power of Attorney Document and certified ID’s)
IMPORTANT: If names are rejected an amount of R90 is payable for every new name application lodged)
- We will e-mail you the registration documents as soon as we receive it.
- You will get an e-mail and SMS update on each stage of the process.
What happens after the Company has been registered?
As soon as your Company is registered, the CIPC automatically applies on your behalf to have it registered with SARS for Income Tax and this will also be updated on both the SARS and CIPC databases.
You will have to open a bank account with one of the recognized banks in RSA in the name of your Company. Your business banker should issue you with 3 x original Bank Confirmation letters that we will need to proceed with all the other statutory registrations on your behalf. Please visit link to SARS registration page to be inserted
What is a Private Company (PTY) Ltd?
Private companies are comparable to companies of the same status under the Companies Act, 1973 and are characterized by the following:
- They are subject to fewer disclosure and transparency requirements.
- A private company will still be prohibited from offering its shares to the public and the transferability of its shares will be restricted, but it may now have more than 50 shareholders.
- The name of a private company must end with the expression “Proprietary Limited” or its abbreviation “(Pty) Ltd”.
The board of a private company must comprise at least one director, or any other minimum number as stipulated in its MOI. Each incorporator is a first director of the company.
Who may be directors of a Company?
Section 76 of the Act, in particular, requires a director when acting as a director, to act:
- in good faith and for a proper purpose
- in the best interests of the company
- with the degree of care, skill and diligence that may reasonably be expected of a person
- carrying out the same functions in relation to the company as those carried out by the director
- having the general knowledge, same skill and experience of that director – a reasonable man/women test.
Number of Directors
Private Company – 1 Director Minimum. Can have shareholders but not compulsory. Shareholder can also be a director.
Public Company/Non Profit Company – 3 Directors minimum