CIPC is an acronym for the Companies And Intellectual Property Commission and is an agency of the Department of Trade, Industry and Competition in South Africa.
The CIPC does registration of companies, co-operatives and intellectual property rights (trade marks, patents, designs and copyright) and maintenance thereof.
Below are some frequently asked questions
Answer: Registering your business gives your brand credibility and protects your intellectual property and is also vital if you plan on seeking funding or government assistance.
Answer.
People trust registered companies more.
Registered companies are usually considered more trustworthy, as itβs registered on formal, regulated and trusted government databases such as the CIPC and SARS.
Funding/Investment.
Being a formally registered company, allows you to apply for business loans or investments, to take on shareholders, and to make use of the various other funding and investment sources that may be available to Private Companies.
Bidding for tenders
Being a formally registered company, you can bid for a government tenders. Sole-proprietorships are not allowed to bid on government tenders.
Note - If you trade as a sole proprietor you would also carry all of the risk and responsibility of the business; a Pty (Ltd) is seen as a separate entity and you will have limited liability.
Answer. You should register your company as soon as you start trading on a daily basis, employ staff, and want to apply for tenders or contracts.
The sooner you register your company, the sooner you can start applying for tenders, get work and get your compliance in order to maximise your opportunities for tenders/contracts.
Answer.
Protect your brand.
The company details and name will be registered with the CIPC - no other company or person will be able to register the same company name.
Easier to transfer the business.
It will be easier to transfer company ownership to another partner. You would only have to change the directorship, but all of the company information and assets will stay the same.
Answer. That would depend entirely on what type of business youβd like to do.
There are a few different types of business entities to choose from:
Non-Profit Organisation - NPO
A non-profit organisation is incorporated for public benefit. The income and assets are used for the organisation's charitable goals, rather than the organisation's stakeholders.
Sole Proprietor
A sole proprietor is the simplest way to do business if you are just starting out. It means that you are just trading under your own name. There is no separation between assets and liabilities of the business and your own. You would be personally liable for any debts that the business incurs.
Private Company β (Pty) Ltd
A (Pty) Ltd is the most common form of company in South Africa. It must be managed by at least one director and have one shareholder.
Personal Liability Company β Inc
A personal liability company is used for firms of professionals like doctors, lawyers and accountants.
Public Companies (Ltd.)
Public companies are business entities that is usually listed on the stock exchange, having issued shares to the public. This business type is managed by a board of directors and are answerable to shareholders.
State Owned Companies β SOC
Companies that are owned by the government.
Answer. Any South African citizen or foreign persons that are over the age of 18.
Answer. A valid ID Document or Passport (For Foreigners)
Answer. Usually between 3 - 7 working days