South Africa
Corporate Guide

Are there any post-incorporation requirements that need to be satisfied in South Africa? For example, registrations for tax purposes or business licences.

In terms of section 67(1) of the Income Tax Act 58 of 1962 (ITA), read with Government Gazette Notice No. 44571, the company will be required to register for income tax. Practically, however, once a company is incorporated it is automatically registered for income tax via the CIPC (which reports the registration to the South African Revenue Service (SARS)) and an income tax number is issued by SARS at the time of incorporation.

Once registered, the new company will be considered a tax resident in South Africa and will be liable for income tax in South Africa on its worldwide income.

The company will further have to register for value-added tax (VAT) if it makes taxable supplies of more than ZAR 1 million in any 12-month period, under the compulsory registration. A business may also choose to register voluntarily for VAT if the value of taxable supplies made or to be made is less than ZAR 1 million but has exceeded ZAR 50,000 in the previous 12 months.

Certain types of businesses require a business licence in terms of the Business Act 71 of 1991 (Business Act). In terms of Schedule 1 of the Business Act, the categories of companies that require business licences are: (i) those that participate in the sale or supply of meals or perishable foodstuffs, (ii) those that participate in the provision of certain types of health facilities or entertainment, and (iii) those that are involved in hawking in meals or perishable foodstuffs.

The licensing of businesses is done by a designated local authority or licensing authority for a particular area. 

Further requirements around business licences may apply in terms of relevant provincial and municipal regulations.