Getting a new South African business off the ground means dealing with two main authorities — CIPC for the company itself, and SARS for tax. The trouble is that founders often tackle these in the wrong order, which leads to delays and repeated admin. Here is a sensible sequence to follow.
Start with the company registration. For most small and medium businesses, a Private Company (Pty) Ltd is the right structure: it limits your personal liability and is recognised everywhere from banks to government tenders. Registration through CIPC is usually completed within a few working days, and it gives you the registration number that everything else hangs off.
Once the company exists, it is automatically registered for income tax, but you still need to put a few things in place. If you plan to employ staff, you will need to register for PAYE. Once your taxable turnover passes R2.3 million in any 12-month period (the compulsory threshold that took effect on 1 April 2026, up from the long-standing R1 million), VAT registration becomes compulsory — and even before then, you can register voluntarily once turnover exceeds R120 000, which often makes sense if your customers are themselves VAT-registered.
Next, think about where you want to do business. If you intend to supply government departments, you must be listed on the Central Supplier Database (CSD) and have a valid tax clearance status. If you want to bid for tenders, add a B-BBEE affidavit to the list. These three together — CSD, tax clearance and a B-BBEE affidavit — are what most tenders ask for first.
Finally, keep up with the ongoing obligations. CIPC Annual Returns are due every year, and missing them can eventually get your company deregistered. Building these into your calendar from day one saves a painful reinstatement process later.
If sequencing all of this feels overwhelming, our Tender Ready Package bundles the core registrations a new business needs to start trading and bidding — and each component is also available on its own.