There is no separate business name register in South Africa. You register a company at CIPC, which creates a legal entity with a protected registered name, or you trade under a business name as a sole proprietor, which involves no registration and creates no entity. A registered company may also trade under a different name using "t/a". What you cannot do is register a business name on its own and get the protection a company gives you.
People arrive at this question expecting a cheap middle option. It does not exist here, and knowing that saves you looking for it.
The three things people mean
1. Registering a company at CIPC
Creates a separate legal person with its own registration number, its own assets and its own liabilities.
The registered name is protected on the companies register — nobody else can register a company under it
Limited liability. The company's debts are the company's, not yours, subject to the exceptions
Comes with obligations: annual returns, beneficial ownership, financial statements, corporate tax, provisional tax twice a year
2. Trading as a sole proprietor under a business name
There is nothing to register. You simply trade.
No entity is created. The business is you
No name protection whatsoever. Anyone can use the same name, and someone can register a company under it tomorrow
No limited liability. Business debts are your personal debts, and creditors can reach your house
Taxed on your personal return at individual rates
You are still lawfully in business. No registration is required to trade, invoice or be paid. See do you need to be registered to invoice a client
3. A company trading under a different name — "t/a"
A registered company may market itself under a name that differs from its registered name.
Smartbook Advisory (Pty) Ltd t/a Ledgerly is entirely lawful.
But your tax invoices, contracts and statutory documents must carry the registered name and registration number. The trading name goes on the website, the signage and the marketing.
This is the option most people are actually looking for when they ask about registering a business name — the flexibility of a brand name, sitting on top of a properly registered entity.
Side by side
| Company at CIPC | Sole proprietor trading name | |
|---|---|---|
| Registration required | Yes | None |
| Cost to set up | CIPC fees | Nothing |
| Separate legal person | Yes | No |
| Limited liability | Yes | No |
| Name protected | On the companies register | Not at all |
| Taxed | Corporate rates, or SBC rates if you qualify | Your personal marginal rate |
| Annual returns to CIPC | Yes | No |
| Financial statements | Yes | Not in the same formal sense |
| Can take on shareholders | Yes | No |
| Can be sold | Yes — the shares | Only the assets |
| Credibility with corporates | Higher | Lower |
What "name protection" actually means, and does not
Worth being precise, because this is where the disappointment usually sits.
Registering a company protects the name on the companies register. CIPC will refuse another company registration under the same or a confusingly similar name.
It does not stop somebody trading under that name. A sole proprietor down the road can use it on their signage tomorrow, and CIPC has no say.
The instrument that gives you exclusive commercial rights to a name is a trade mark, registered separately. Not a company registration, and not a name reservation. See what is a company name reservation.
Three separate things, frequently confused:
| What it gives you | |
|---|---|
| Company registration | Nobody else registers a company under that name |
| Name reservation | Holds a name at CIPC for six months |
| Trade mark | The right to stop others using the name commercially |
Which should you choose?
Sole proprietor is fine when
You are testing an idea and revenue is still small
Profits are below the level where the company's tax position and compliance cost pay for themselves
The work carries little liability risk
Your customers are individuals or small businesses who do not care about entity type
You want the simplest possible administration
Register a company when
Liability matters. Anything where a mistake could cost more than you can absorb personally
Corporate customers require it. Many will not onboard a sole proprietor, and most tenders effectively require a company
Profits have reached the level where the company is better after tax. See sole proprietor vs (Pty) Ltd
You want shareholders, or intend to sell the business one day
You are employing people, where the separation genuinely helps
The brand matters and you want the name on the register
The honest position for most people: start as a sole proprietor if you are genuinely testing something, and register a company when liability, customers or profits make it worthwhile. Registering a company on day one for a business that may not exist in six months is a compliance obligation you did not need.
What a sole proprietor still has to do
"No registration" does not mean "no obligations".
Income tax, on your personal return, and provisional tax twice a year if you have business income
VAT, if you exceed the compulsory threshold — sole proprietors register for VAT in their own name
PAYE, UIF, SDL and COIDA, if you employ anyone. A sole proprietor with staff has the same payroll obligations as any company
Municipal licensing and zoning, on the same basis as anyone else. See do you need a business licence
Proper records, both for SARS and for your own sanity
Moving from one to the other
Sole proprietor to company is not a conversion. You register a new company and transfer the business into it, which is a disposal with capital gains tax, VAT and recoupment consequences unless properly structured. See how to move a business from a sole proprietor into a company.
Do this deliberately, with advice, particularly where the business has real value or you are sitting on an assessed loss.
Frequently asked questions
How do I register a business name in South Africa? There is no separate business name register. You either register a company at CIPC, which protects the name on the companies register, or you trade under a business name as a sole proprietor, which requires no registration and gives no protection.
Can I trade under a different name from my registered company name? Yes. A company may market itself under a trading name using "t/a", provided tax invoices, contracts and statutory documents carry the registered name and registration number.
Does registering a company stop someone else using the name? Only for company registrations — CIPC will refuse another company under the same or a confusingly similar name. It does not stop a sole proprietor or anyone else from trading under it. Exclusive commercial rights come from a registered trade mark.
Do I need to register a company to invoice a client? No. A sole proprietor can lawfully invoice and be paid without any registration. Some corporate customers require a company before they will onboard you, but that is their procurement policy rather than the law.
Is a sole proprietor cheaper than a company? To set up and run, yes — no CIPC fees, no annual returns, no formal financial statements. But there is no limited liability, income is taxed at your personal marginal rate, and there is no entity to sell or bring shareholders into.
When should I register a company instead of trading as a sole proprietor? When liability matters, when corporate customers or tenders require it, when profits reach the level at which the company is better after tax, when you want shareholders, or when you intend to sell the business.
Do sole proprietors pay PAYE and UIF? Yes, if they employ anyone. A sole proprietor with staff has the same payroll obligations as any company — PAYE, UIF, SDL where applicable, and COIDA.
Can I reserve a business name without registering a company? You can reserve a name at CIPC without immediately registering, but the reservation lasts six months and exists to be used for a company registration or name change. It is not a business name registration and confers no commercial rights.
Pick the structure, not the paperwork
The question is never really "should I register a name". It is whether you need a separate legal person — for liability, for customers, or for tax.
Smartbook models the sole proprietor versus company position on your actual numbers before you register anything, then handles the registration and tax setup if a company is the answer.
Last reviewed: 29 July 2026. Written by the Smartbook team — SAIPA and SAICA accredited, SARS registered tax practitioners. Trade mark protection is a legal matter requiring specialist advice. General guidance, not legal advice.
Primary sources: CIPC · BizPortal · Companies Act 71 of 2008 · SARS