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Thread: Registering a small company with CIPC

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    Registering a small company with CIPC

    Good Afternoon,

    I am in the process of registering a small company with the CIPC. So far it seems to be quite straight-forward but I was wondering if there is any advice that can be offered with regards to name registrations or the MOI and if there are any mistakes that can easily be made that can delay the process?

    Thank you

    Jacky

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    Speak to one of these shelf company providers, they already have companies that have been registered and processed without any recorded trading, all you do is change the directors (and change company name if you like) and the companies yours, it's quicker than registering from the start with CIPC. Acocunting firms also provide this service.

    I've just been through the process with CIPC and it took a month to take a shelf company and appoint me as the director.

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    Silver Member Greig Whitton's Avatar
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    If you buy a shelf company then you may end up inheriting all sorts of unpleasant surprises (e.g. undisclosed liabilities; unfair labour practices). Unless you are willing to conduct a thorough due diligence to screen these potential risks (e.g. establish whether the company actually has no trading history or not), register a new company.

    Founder of Evergrow - Helping South African business owners grow their business without the growing pains

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    Beancounter (10-Sep-14)

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    Quote Originally Posted by Greig Whitton View Post
    If you buy a shelf company then you may end up inheriting all sorts of unpleasant surprises (e.g. undisclosed liabilities; unfair labour practices).
    What you are describing is not a shelf company. Shelf companies have no trading history, it's just someone else doing the leg work of dealing with CIPC and you stepping in to take it over, saves time and hassle. If you can afford the time then register yourself and go through the process. CIPC is experiencing a huge backlog at the moment, could take months.

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    Gold Member Houses4Rent's Avatar
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    I doubt anything at CPIC will be straight forward to be honest. If it is it will still take long periods.

    One has no default certainty that a so called shelf company had no trading history, better be safe than sorry.
    Houses4Rent
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    Silver Member Greig Whitton's Avatar
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    Quote Originally Posted by Houses4Rent View Post
    One has no default certainty that a so called shelf company had no trading history, better be safe than sorry.
    Exactly. In theory a shelf company has no trading history. But, in practice, a company alleged to be a shelf company might actually have a trading history and burden the new owner with liabilities and risks. So the only way to be sure is to conduct a thorough due diligence or register a new company.

    Also, buying a shelf company is not quite as simple as registering new directors. You also have to change the registered address and will probably want to change the registered name as well (and possibly the registered auditors as well). Very importantly, the shelf company's original Memorandum of Incorporation is unlikely to be a perfect fit for the new owner(s) so that will need to be amended as well.

    May as well just register a new company, in my opinion.

    Founder of Evergrow - Helping South African business owners grow their business without the growing pains

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    True true...you could get screwed if you picked up a shelf with a nasty trading history. Of course do your due diligence and purchase the shelf company from a reputable company. Otherwise go through the process yourself if you have the time and inclanation.

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    Guys, it is really simple to register a company.

    They have 7 working days to get back you on the name reservation, and another 7 working days to register the company!

    Then you don't even need to change directors and wait a month, and you are sure that this is a brand new company.

    And to make it even better, these days CIPC communicates with SARS, and you have your income tax number within 21 working days! I have done 3 companies in the past month, all with pleasant experiences.

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    Bronze Member Beancounter's Avatar
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    Dellatjie is so right. I reserved a name on 23 July, got confirmation of the name reservation 7 working days later. I submitted the company registration forms on the same day I got the name confirmation and got a new company the very next day. The clients were very happy!

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    Quote Originally Posted by Beancounter View Post
    Dellatjie is so right. I reserved a name on 23 July, got confirmation of the name reservation 7 working days later. I submitted the company registration forms on the same day I got the name confirmation and got a new company the very next day. The clients were very happy!
    I'm curious as to how you achieved this with CIPC's turnover rate.

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