So you have decided that you want to take the entrepreneurial leap and start your own company. But where do you start with the registration process and what do you need to get your company ready for its first transaction.
What will your company be doing?
Once you’ve decided that you want to start your own business you may have already decided what the purpose of your business is going to be. For example you have decided that you wanted to start a catering business. You need to consider what market you will be catering for: will you be catering for big corporate events or for kiddie’s parties. Deciding on your target market will have an impact on how you decide on a name for your company. A big corporate company or government intuition is more likely to use a catering company whose name indicates that the company caters for corporate entities, rather than a company whose name indicates that they cater for kiddie’s parties.
What is your company going to be called?
Once you have decided on what your business will be doing and who you will be targeting with, you need to decide on a name for your company. There are a few legislative requirements that you need to consider when deciding on a name for your company.
The Companies Act, Act 71 of 2008
Some of the key requirements by the Companies act are:
– It may be in any language together with any letters, numbers and punctuation marks.
– The company’s name may be the same or confusingly similar to another registered business.
– It may not be misleading to the public or mislead them to believe the company is part of another registered business or organ of state
– May not include certain words, symbols or expressions
– Must contain the abbreviation of the type of company
The Consumer Protection Act 68 of 2008
The Consumer Protection Act prohibits the use of unregistered business names unless a person trades under his or her full names as recorded in an identity document. This implies that a company may no longer be registered under a specific name and trade under another (Trading as).
Who will be the shareholders of the company?
The shareholders are the owners of the company and will ultimately benefit from the operations of the company. If you intend on registering a company for yourself you will typically take on 100% of the issued shares. If you decide to take on a partner in your business you will typically need to decide what percentage ownership each partner will have in the company.
Who will be the directors of the company?
The directors of the company are appointed by the shareholders to manage the company’s assets on their behalf. In the case of owner managed companies, the shareholders are usually also the directors of the company.
Some of the key duties of directors are:
– To exercise care, skill and diligence
– To act in the best interest of the company
– To act within their powers and for a proper purpose
– To exercise independent judgement
– To avoid conflicts of interests
What do you need to register your own company?
You need a certified copy of your ID document and the necessary completed forms to start the registration process.
How long does it take to register a company?
The CIPC’s service delivery standard indicates that companies will be registered in 3 business days from receipt of the supporting documents. If you want to reserve a name for the company it may take as long as 8 business days.
These are just some of the aspects to consider when registering a company. To start the registration process of your own company, please visit our online shop. We will be covering other aspects in starting up your business in future posts.