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CIPC registration

Starting a business? To make things official, you'll need to register it with the Companies and Intellectual Property Commission

Glad you asked! While CIPC registration is not mandatory, it can benefit you and your business in a number of ways.

What’s more, if you want to do business with the government and the formal sector, or if you want to access forms of government support, CIPC registration is required. 

Before we get into what CIPC registration entails, we need to cover the basics:

The majority of South African SMEs trade as either a Sole Proprietorship (an unregistered business), or a Private Company (a registered business).

While there are pros and cons of each, businesses who trade as a registered company (also known as a Pty Ltd.) automatically benefit from three major perks:

  • You qualify for external funding

  • You can claim certain business expenses back

  • You can sell your Pty Ltd.

If CIPC registration doesn’t sound like your cup of Joco (meaning that you opt to trade as a Sole Proprietorship) bear the following in mind:

  • You, and only you, are responsible for all financial risks involved in running your business

  • You can’t apply for a business or government loan (No biggie - Yoco Capital allows any type of business to get funding - cause we’re cool like that)

  • You cannot sell your business. Meh

When you kick the bucket, so does your business.

Decisions, decisions…