The South African Business Compliance Checklist: A Practical Guide for Entrepreneurs

Starting and running a business in South Africa is one of the most empowering decisions an entrepreneur can make, but the legal and compliance landscape can feel overwhelming without formal training. At Kulima Capital, we often meet passionate founders who have brilliant business ideas, but who lack clear, accessible guidance on how to meet South Africa's regulatory requirements.

This guide breaks down the essentials into a simple, practical checklist that any business owner can follow.

1. Register Your Company with CIPC

Before you can trade formally, you must register your business with the Companies and Intellectual Property Commission (CIPC).

You will need:

• Proposed business name

• Director information

• Registered address

• Supporting documents (ID copy, contact details)

Key requirements:

• Choose the appropriate company structure (Pty Ltd, NPC, partnership, etc.)

• Download your COR14.3 registration certificate

• Ensure your company details remain updated on CIPC at all times

2. Protect Your Brand with a Registered Trademark

Your name is your equity. Trademarking protects your brand from unauthorised use.

Steps to follow:

• Conduct a trademark search to ensure your name, slogan or logo is available

• File a trademark application with CIPC

• Pay the filing fee

• Monitor your application during the examination period

• Maintain your trademark every 10 years

Registering a trademark gives you exclusive use of your brand nationally and strengthens your competitive edge.

3. Open a Business Bank Account

Banks require the following to open a business account:

• COR14.3 company registration documents

• Director IDs

• Proof of business address

• Company income tax number (from SARS)

• Resolution authorising the opening of the account if more than one director exists

• B-BBEE affidavit (for turnover below R10 million)

A separate business account ensures clean financial records and strengthens your credibility with customers, suppliers and lenders.

4. Register with SARS

Every registered business must register with the South African Revenue Service for the following:

Company Income Tax (CIT)

• Automatically generated upon CIPC registration

• You must activate the company profile on SARS eFiling

PAYE (Pay-As-You-Earn)

Required if you have employees.

VAT (Value Added Tax)

• Mandatory if turnover exceeds R1 million in any 12-month period

• Voluntary registration allowed from R50 000 turnover

Provisional Tax

Most companies must submit provisional tax returns twice a year.

Being tax compliant builds business legitimacy and ensures you can do business with government, corporates and financial institutions.

5. Submit Annual Returns with CIPC

All registered companies must file annual returns to remain active on the CIPC database.

Key notes:

• Returns confirm your company is still in operation

• Failure to file leads to penalties

• Long-term non-compliance can result in deregistration

6. Understand Mandatory Industry Regulations

Every industry has laws that protect customers, workers and the environment.

Consumer Protection Act (CPA)

Ensures fair and ethical business practices.

Protection of Personal Information Act (POPIA)

Governs how businesses collect, store and use personal information.

Company Law

Outlines governance responsibilities, director duties and shareholder rights.

Property Law

Relevant if you lease commercial spaces or manage real estate.

FMCG Quality Assurance

If you sell food, cosmetics, or consumables you must comply with:

• SABS standards

• Health and safety regulations

• Correct product labelling

• Ingredients disclosures

• Shelf life/stability testing (where applicable)

Understanding these regulations protects both your business and your customers.

7. Register on the Central Supplier Database (CSD)

If you plan to supply goods or services to government at municipal, provincial or national level, you must register on the CSD.

You will need:

• Tax clearance

• B-BBEE affidavit or certificate

• Banking confirmation

• Director information

• CIPC compliance

• Proof of address

Once registered, your business becomes visible to government buyers and procurement officers.

8. Employment Equity, Labour Requirements and B-BBEE

Employment Equity (EE)

Mandatory for businesses with 50+ employees, or if turnover exceeds the industry threshold.

B-BBEE (Broad-Based Black Economic Empowerment)

• Businesses below R10 million turnover qualify as Exempted Micro Enterprises

• An affidavit is required annually

• Larger businesses need a formal B-BBEE certificate

Basic Conditions of Employment

If you employ staff, you must comply with labour standards relating to:

• Working hours

• Leave

• Contracts

• UIF (Unemployment Insurance Fund)

9. Additional Essential Compliance Areas

Depending on your model and sector, consider the following:

• Health and safety certificates

• Municipal business licenses

• Fire and occupancy certificates

• Liquor licence (if applicable)

• Environmental compliance

• Import/export registration

10. Keep Records and Stay Organised

Compliance is not once-off. It is an ongoing process.

Maintain records of:

• Tax filings

• Financial statements

• Supplier contracts

• Board resolutions

• Employee information

• Invoices and receipts

Reliable records make audits easier and reduce business risk.

Compliance is a Competitive Advantage

While compliance may seem daunting, it is one of the most powerful tools for building a credible, fundable and scalable business. When your legal and regulatory foundations are strong, you unlock opportunities with government, corporates and investors.

At Kulima Capital, we support entrepreneurs in building businesses that are not only profitable, but also compliant, ethical and resilient.

If you would like guidance on setting up your compliance framework or aligning your business with South African regulatory standards, our team is here to help.