For many new entrepreneurs, registering a business is not where the journey begins. It is the point at which something that has already started – a side business, professional practice, or small venture – becomes a formal business.
It could be an accountant taking on private clients, a financial adviser starting to operate independently, or a photographer or make-up artist turning weekend work into a business. It could also be a small group of people getting together to invest in property.
At this stage, there may not yet be a lawyer or accountant handling the business administration. The entrepreneur needs to understand the registration process and, in many cases, be able to handle it themselves.
Moonstone Business School of Excellence’s new four-CPD-hour course, CIPC – A Practical Guide on How to Get Started, is designed to help them do just that.
Leonie Tanser, accountancy lecturer at MBSE, says the CIPC process itself is not complicated, but understanding what is involved before starting can help entrepreneurs to avoid unnecessary time and expense.
“The process is not complicated, but you need to do your research beforehand so that you don’t waste time and money,” she says.
Understanding the process
The Companies and Intellectual Property Commission (CIPC) registers companies and intellectual property, such as patents.
For someone registering a business for the first time, the practical question is how to navigate the process and understand the choices involved.
The type of entity is one of those choices. The course takes participants through the registration options and explains what they mean, allowing them to consider the options before starting the registration process.
The course is also relevant to professionals who may assist clients with registrations. A junior accountant or attorney, for example, may have encountered the CIPC and the different registration options during their studies but never worked through a registration themselves.
Doing the registration
The course is structured around the practical steps involved in registering a business, rather than simply explaining the CIPC in theory.
It covers:
- the role and nature of the CIPC;
- creating a customer profile;
- name reservation;
- company registration; and
- ongoing compliance requirements.
It also includes a CIPC registration checklist.
If you have all the information you need, the registration process is much easier to work through.
“The checklist can assist participants who are new to company registration to ensure that they have all the necessary information so that their registration is as seamless as possible,” Tanser says.
Registration is not the end
Getting the registration certificate does not bring the business’s administrative responsibilities to an end.
Companies have ongoing obligations, including submitting annual returns. Failure to comply can result in penalties and, ultimately, deregistration.
For a new business owner focused on finding clients, generating income and building the business, these requirements can easily become secondary.
Tanser says: “Once registered, you will need to submit an annual return.”
She notes that failure to do so can result in penalties and even deregistration.
The course also introduces participants to the broader corporate governance implications of getting the business administration right from the beginning.
“CIPC is a vital step in being legally compliant. A good corporate governance framework takes time and effort, and this course will assist the participants to set this up from the start,” Tanser says.
The course offers four CPD hours, is approved by the Financial Planning Institute of Southern Africa, costs R550, and is valid until 31 May 2027.
For more information about CIPC – A Practical Guide on How to Get Started, or MBSE’s other qualifications and courses, visit www.mbse.ac.za or contact MBSE at help@mbse.ac.za.
