Quick answer: No, you don't have to register a company to start selling. Takealot accepts individual sellers, and Amazon.co.za lets you register as an individual or as a business. But once you're selling seriously, a registered (Pty) Ltd often makes sense: suppliers take you more seriously, your personal assets are separated from the business, and it's easier to grow. Either way, all your marketplace income must be declared to SARS.
Selling as an individual vs as a company
| Individual (sole proprietor) | Company – (Pty) Ltd | |
|---|---|---|
| Set-up | Sign up with your ID and bank account | Register with CIPC first |
| Liability | You're personally liable for business debts | The company is a separate legal person |
| Tax | Profit is added to your personal income and taxed at your marginal rate | Company tax on profit, then dividends tax when you pay yourself dividends |
| Suppliers and wholesalers | Some only supply registered businesses | Easier to open trade accounts |
| Admin | Simpler | CIPC annual returns, company tax returns, proper books |
Selling on Takealot
Takealot allows both individuals and registered businesses to sell on its marketplace. You apply through the Seller Portal, and Takealot reviews your application before onboarding. Budget for:
a monthly seller fee set by Takealot;
success fees, a percentage of each sale that varies by category;
fulfilment and storage fees if you use Takealot's warehouses.
Selling on Amazon.co.za
You register on Seller Central and choose whether you're selling as an individual or a business. Check the current requirements during sign-up. Amazon has its own selling and fulfilment fees, so work them into your pricing.
When a company makes sense
Consider registering a (Pty) Ltd when:
your sales are growing and you want to separate personal and business risk;
you need trade accounts with suppliers or importers;
you want to bring in a partner or investor;
your profit is high enough that company tax is more efficient than paying tax at your personal marginal rate. Ask your accountant to model this.
We can register your company and help you open a business bank account.
The tax side: what every online seller must know
Declare gross income. Declare your total sales, not just what lands in your bank account after marketplace fees. The fees are then deductible business expenses.
Individuals include business income in their personal tax return. Companies file a company tax return every year.
VAT: from 1 April 2026, you must register for VAT when your taxable sales exceed R2.3 million in any 12-month period (previously R1 million). You can register voluntarily when taxable supplies exceed R120,000 in the past 12 months (previously R50,000).
Importing stock: if you import goods to resell, you'll need to register with SARS Customs as an importer and account for import VAT and duties.
Keep records of every sale, fee, refund and stock purchase. Marketplace reports make this easier, but they must be reconciled to your bank.
Frequently asked questions
Can I sell on Takealot without a company?
Yes. Takealot accepts individual sellers.
Can I sell on Amazon South Africa as an individual?
Amazon.co.za allows individual and business seller accounts. Confirm the current requirements when you sign up.
Do I need to be VAT registered?
Only once your taxable sales exceed R2.3 million in 12 months (from 1 April 2026). Voluntary registration is possible when taxable supplies exceed R120,000 in the past 12 months.
Are marketplace fees tax deductible?
Yes. Selling, fulfilment and storage fees are business expenses.
Sell more, stress less
Smartbook helps online sellers set up properly and stay compliant. We register your company, handle VAT when you need it, and do your monthly bookkeeping, including reconciling Takealot and Amazon payouts. Email hello@smartbookie.co.za or contact us.
Last reviewed: 2 October 2026. General guidance, not tax advice. Marketplace fees and requirements change; check the current terms with Takealot and Amazon.