There's so much to consider when you form a new company. Now, a new initiative launching next month will drastically simplify the process by letting companies be registered with the Companies and Intellectual Property Commission (CIPC) a day after opening a bank account for the company. The best part? There's a chance SARS will be brought into the integration so that your new company's automatically registered for Vat, too!
You'll have one less task to cross off your immense 'starting a company' to do list soon. Thanks to FNB, company registration can be done in just ine day.
South Africa is becoming the first country to allow companies to be registered within one day of opening a bank account in a 'world first' business and banking deal, says SouthAfrica.info
Here's how opening a bank account for your business with FNB will speed up your company registration with the CIPC…
The collaboration between the Companies and Intellectual Property Commission (CIPC) and First National Bank will be launched in May and has been in the works for 18 months.
And it's not an empty promise – it currently takes the CIPC just one day to process an electronically filed application for a company registration if the necessary funds were in the bank and all the documents were correctly submitted.
This will be a given if you've successfully opened a bank account for your business.
And it's hoped that Nedbank, Standard and Absa will take part in the process too, once they have the required systems in place.
But there's more good news – a collaboration with SARS is also being forged to establish an integrated service that provides exchange and verification data in future, adds SouthAfrica.info
This would mean that SARS could register a company and register it for Value Added Tax (Vat) simultaneously.
Just remember, this is a new development for SARS, CIPC and the banks – and the new Vat registration process haven't replaced the old process yet.
It's simpler than you think, as you can now embark on the process of registering your company name without reserving it first.
Have a company name in mind but not ready to register the company with the CIPC yet? No problem!
So if you can prove to the CIPC you definitely have an interest in a specific company name, you can go ahead and register it as a defensive name to save yourself time by reserving your company name before you embark on the name registration process, says Henk Heymans in the Practical Accountancy Loose Leaf.
It's yet another way to simplify your company registration with the CIPC.