Sole proprietors are easily established by simply opening a bank account. The risk however is that personal assets are at risk if company is in financial trouble. Personal tax and income tax are combined which can be a hassle to submit. As well as no continuity in the company.

PTY registration portrays a sense of professionalism and has advantages for you as a shareholder and directors of the company:
Company is a separate legal entity to shareholders
Limited liability for shareholders
The company is continual
Capital is easy to raise

The characteristics of a private company, PTY are:
May have up to 50 shareholders
Minimum of one director
Shares are easily transferable
If turnover exceeds 5 million rand turn over annually, annual financial statements are audited

Despite common believe PTY's are not expensive to register and although there are a few legal steps to take when registering your PTY it can be hassle free with some assistance.
Steps you will need to take to comply with legal requirements when you register a PTY:
Register PTY
Once registration is complete you will receive a PTY company number and memorandum of incorporation from all directors which will be required to open a bank account for your company
You will then apply for SARS registration for company. This will include registration of Income tax, PAYE & UIF
Then you will apply for a SARS tax clearance certificate
You will register for VAT from SARS
*A company only qualifies for VAT if it has a turnover of more than 5 million annually, or 50 000- 60 000 monthly turnover, further more a company will have to have proof that they will attain these turnovers by quotes or tenders they have received.

Its not as hard as it may seem