CIPC's own fees are small — R50 to reserve a name and R125 to R175 to register the company, depending on whether you use the standard or a customised Memorandum of Incorporation. The realistic all-in cost of getting a company registered and actually operational is closer to R2,500 to R3,500, and the ongoing cost of keeping it compliant runs R15,000 to R40,000 a year.
The registration fee is the smallest number in this article. It is the annual cost that decides whether incorporating is the right move.
The CIPC fees
| Item | Fee |
|---|---|
| Name reservation (up to 4 name choices) | R50 |
| Company registration, standard MOI | R125 |
| Company registration, customised MOI | R475 |
| Registration without a reserved name | Included in the registration fee |
Registering with the registration number as the company name — for example 2026/123456/07 — avoids the name reservation fee entirely and is the fastest route. You can file a name change later.
These fees are current at the date of review. CIPC publishes its fee schedule and it changes from time to time, so confirm before budgeting.
The costs nobody mentions
This is where the real number is.
| Item | Typical cost | Notes |
|---|---|---|
| CIPC name reservation and registration | R175 | If you do it yourself |
| Certified copies of IDs | R0 – R100 | Free at a police station, charged by some commissioners |
| Business bank account | R0 – R500 | Opening is usually free; monthly fees start immediately |
| Beneficial ownership filing | R0 – R500 | Required, and it blocks your annual return without it |
| SARS registered representative confirmation | R0 – R500 | Free to do yourself, and it blocks everything else without it |
| Domain and email | R150 – R800 | Not legally required, commercially essential |
| Company stamp | R150 – R300 | Rarely necessary now |
| Accounting software | R0 – R500/month | Some free tiers exist |
| Assistance if you use a service provider | R700 – R2,000 | Usually includes the CIPC fees |
Realistic all-in to be registered and operational: R2,500 to R3,500.
Where people underestimate: the registered representative confirmation and the beneficial ownership filing. Both are free to do yourself and both are absolute blockers — without the representative you cannot get a tax clearance certificate, and without beneficial ownership CIPC will not accept your annual return.
The number that actually matters: annual cost
This is the figure to weigh when deciding whether to incorporate at all.
| Obligation | Annual cost |
|---|---|
| CIPC annual return | R100 – R4,000, scaled by turnover |
| Beneficial ownership filing | R0 – R500 |
| Annual financial statements | R6,000 – R20,000 |
| ITR14 company tax return | Often included with AFS |
| Two provisional tax returns (IRP6) | R1,000 – R3,000 |
| Monthly bookkeeping | R18,000 – R60,000 a year |
| Payroll, if you have staff | From R9,000 a year |
| VAT returns, if registered | Usually within the bookkeeping fee |
Realistic annual cost of a compliant trading company: R15,000 to R40,000+.
A dormant company still costs R2,000 to R6,000 a year — annual return, beneficial ownership, financial statements, two nil IRP6s and a nil ITR14. See does a dormant company still have to file returns.
Compared to staying a sole proprietor
| Sole proprietor | Company | |
|---|---|---|
| Setup cost | R0 | R2,500 – R3,500 |
| Annual compliance | R3,000 – R15,000 | R15,000 – R40,000+ |
| CIPC filings | None | Annual return + beneficial ownership |
| Financial statements | Not required | Required within 6 months of year-end |
| Tax returns | One personal return | ITR14 + 2 IRP6s + your personal return |
| Liability | Unlimited and personal | Limited, with exceptions |
The gap is roughly R12,000 to R25,000 a year. That is the price of limited liability and the credibility a company carries — and for a business making R180,000 of profit with no staff and no contractual risk, it is often not worth paying yet.
See sole proprietor vs Pty Ltd.
Doing it yourself vs using a service
Doing it yourself costs R175 in CIPC fees and takes a few hours across BizPortal, plus the SARS and banking steps afterwards.
It works well when: you have South African IDs for all directors, one class of ordinary shares, no rush, and you are comfortable navigating BizPortal, eFiling and a bank's FICA process.
A service provider typically charges R700 to R2,000 including the CIPC fees.
Worth paying for when: there are foreign directors, you need it done quickly and correctly first time, you want the tax registration and registered representative handled as part of it, or you want the ongoing compliance to start immediately rather than being discovered later.
The honest comparison: the registration itself is not hard. What people pay for is not repeating the three most common mistakes — a name rejection that costs two weeks, a registered representative never confirmed, and beneficial ownership never filed.
Costs that come later, and catch people out
The CIPC annual return is scaled by turnover. A dormant company pays the lowest band. A company turning over several million pays substantially more, and late filing pushes it higher again.
Beneficial ownership must be filed annually and within 10 business days of any change. Without it, the annual return is blocked entirely — which means penalties accrue on a return you are unable to file. See what is beneficial ownership.
Annual financial statements are required for every company, trading or not, within six months of year-end. This is the single largest recurring cost for most small companies.
Deregistering later costs money too. Roughly six months, plus outstanding returns, plus exit VAT if you are VAT registered. See how to close down a business properly.
Frequently asked questions
How much does it cost to register a company in South Africa? CIPC charges R50 for a name reservation covering up to four name choices, and R125 to register with the standard Memorandum of Incorporation or R475 with a customised one. The realistic all-in cost of being registered and operational is R2,500 to R3,500 once banking, certified documents and the SARS registrations are included.
Can I register a company for free? No, but the CIPC fees are small. Registering without reserving a name — using the registration number as the company name — avoids the R50 reservation fee, and you can file a name change later.
How much does it cost to keep a company running each year? R15,000 to R40,000 or more for a trading company, covering the CIPC annual return, beneficial ownership filing, annual financial statements, the ITR14, two provisional returns and monthly bookkeeping. A dormant company costs R2,000 to R6,000 a year.
Is it cheaper to stay a sole proprietor? Yes, by roughly R12,000 to R25,000 a year. A sole proprietor has no CIPC filings, no financial statement requirement and a single personal tax return. The gap is the price of limited liability, which is worth paying once you have staff, contracts with real risk, or assets to protect.
Should I pay someone to register my company? It depends on the complexity. Doing it yourself costs R175 in CIPC fees and works well for a straightforward company with South African directors. A service is worth it where there are foreign directors, you need it right first time, or you want the SARS registrations and registered representative handled as part of it.
What is the cheapest way to register a company? Register it yourself on BizPortal using the registration number as the company name, which avoids the name reservation fee, then complete the SARS registered representative confirmation and beneficial ownership filing yourself. Total CIPC cost is R125 to R175.
Why is my CIPC annual return more expensive than someone else's? Because the fee is scaled by turnover. A dormant or very small company pays the lowest band and a larger company pays substantially more, with late filing attracting a higher fee again.
The registration is the cheap part
R175 gets you a company. R15,000 to R40,000 a year keeps it compliant — and the businesses that get into trouble are almost always the ones that budgeted for the first number and not the second.
Smartbook registers companies for R880 including the CIPC fees, and handles the annual compliance from R2,750 a month excluding VAT for businesses under R1 million turnover.
See accounting plans and pricing →
Last reviewed: 26 July 2026. Written by the Smartbook team — SAIPA and SAICA accredited, SARS registered tax practitioners. CIPC fees are published on cipc.co.za and change from time to time — confirm current fees before budgeting. Other cost ranges are typical market observations, not quotes.
Primary sources: CIPC · CIPC BizPortal · SARS · Companies Act 71 of 2008