Starting a business in South Africa: the compliance basics

To start a business in South Africa: register the company with CIPC, register for tax with SARS (corporate income tax 27%; VAT 15% once over R2.3 million (from 1 April 2026)), comply with the Labour Relations Act & Basic Conditions of Employment Act if you hire, and meet POPIA (Protection of Personal Information Act) for personal data.

First compliance steps

  1. 1 Register the company with CIPC.
  2. 2 Register for tax with SARS.
  3. 3 Register as an employer (UIF (1% employer + 1% employee)) and use written contracts if you hire.
  4. 4 Register for VAT once turnover passes R2.3 million (from 1 April 2026).
  5. 5 Put a basic POPIA (Protection of Personal Information Act) framework in place.

Frequently asked questions

What do I need to start a business in South Africa?

Register with CIPC, register for tax with SARS, and meet labour (Labour Relations Act & Basic Conditions of Employment Act) and data-protection rules. Confirm specifics with SARS.

More on South Africa

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Reviewed June 2026 from official sources. General information only — confirm with SARS or a registered professional.