The Companies Act, 2008, regulates companies’ registrations. In order to register, some documents must be completed and submitted to the Companies and Intellectual Property Commission (“CIPC”), together with a prescribed fee.
The waiting period is between 3 and 6 weeks, for the documents to be processed and the company to be registered accordingly.
Documents required (and in some cases compulsory) when starting and registering a business depend on which form of entity you choose. For example, in the case of a company, the company’s memorandum of incorporation (MOI), a notice of incorporation and the details of the initial directors of the company must be lodged.
If you decide on a partnership with someone else, you should have a partnership agreement. If you chose a company, a shareholders agreement is not compulsory, but should be concluded in order to regulate the relationship between the shareholders.
If you are going to employ people, you need to make sure that you comply with labour legislation. You will first need to determine whether the persons are employees or independent contractors. Then you will have to prepare contracts for them.
Depending on your type of business, you may need a business or trading license. You should also check whether the property from where you operate has the correct zoning.
These are few of the things to consider if you want to register your own business. It is advisable to consult professional advisors such as an attorney, an accountant and an insurance broker. These professionals will assist with the structuring of a business from a legal perspective, the drafting of agreements and providing general legal advice on aspects such as tax, laws applicable to specific forms of entities etc.
Contact us if you require assistance on the process above.