Basics of close corporations

To register a close corporation you can use a service provider or register it yourself.

A service provider is an agent, either an individual or a company, who will register your company and charge a fee for the service.

Before paying, find out how much it will cost and get a breakdown of the fees. After paying, provide your agent with five or six possible names for your company. Your agent might require other documents.

But you could also register the company yourself.

Choose a name for the business and reserve it at the Companies and Intellectual Property Registration Office (Cipro) in Pretoria.

Buy a CK7 form at a stationer and a R50 revenue stamp at a post office.

When you fill in the form, check:

l that you are sure about the name and whether it is a translation or a contraction;

l that you have five or six other names in case someone else has already used your name;

l you state the core business;

l you provide the owner's name and surname;

l that you provide address where the form should be returned.

l that you sign it and send it to Cipro.

Once the name is approved, lodge your founding statement. This means submitting the CK1 form for final registration of your business. Buy a form and a R100 revenue stamp.

You will also need a letter from an accounting officer that includes a practice number. The regulations compel you to appoint an accountant. The accountant's letter acknowledges he is the business accounting officer, which will cost you R200 to R350.

Gather this paperwork and send it with the founding statement or CK1 form to Cipro. Cipro should approve the statement, which means you own a close corporation. You receive the founding statement, which becomes an official document of your business. Keep it safe. You will have to produce it while running your business.

The founding statement must include the company's:

l full name;

l description of its core business;

l postal address;

l physical address;

l owners' names and identity numbers;

l owners' share of business;

l owners' contributions to the company;

laccountant's name and address.

The business must include its registration number and name in all correspondence. Register the company with Sars and you are ready to go.