What is the difference between CIPC and SARS?

CIPC handles company registration and legal compliance, while SARS manages tax registration, collection, and financial compliance.

Is my company automatically registered with SARS when I register with CIPC?

Yes. CIPC automatically sends your company information to SARS, which generates a tax number. You must still activate your SARS profile.

Do I need to file returns with both CIPC and SARS?

Yes. CIPC annual returns prove your company is active, while SARS returns confirm your taxes are up to date.

What happens if I don’t comply with CIPC or SARS?

If you ignore CIPC, your company can be deregistered. If you ignore SARS, you can face penalties, audits, and non-compliance status.

Can Smartbook help me with both CIPC and SARS compliance?

Yes. Smartbook can register your company with CIPC, manage annual returns, register your taxes with SARS, and keep you compliant on both sides.

CIPC vs SARS: What’s the Difference?

Johan De Wet
Oct 24
3 min read

If you’re starting a business in South Africa, two government institutions you’ll hear about immediately are CIPC and SARS.

They both play crucial roles in running a compliant business — but they handle very different responsibilities.

In this Smartbook guide, we’ll clearly explain the difference between CIPC and SARS, how they work together, and what each one expects from your company.

What Is CIPC?

CIPC stands for the Companies and Intellectual Property Commission.

It’s the government body that manages company registrations and related compliance matters in South Africa.

Think of CIPC as the birth certificate office for businesses — it registers your company and keeps your legal details on record.

CIPC Is Responsible For:

Registering new companies and close corporations
Managing company amendments (name, directors, address changes)
Issuing company documents (e.g. CoR14.3 certificates)
Maintaining the company database
Processing annual return filings
Managing business name reservations and trademarks
Handling beneficial ownership declarations

Smartbook Tip: Your company doesn’t officially exist until it’s registered with CIPC.

What Is SARS?

SARS stands for the South African Revenue Service — the country’s tax authority.

Once your company is registered with CIPC, SARS manages everything related to taxes, payroll, and compliance reporting.

SARS Is Responsible For:

Issuing tax reference numbers for individuals and companies
Managing income tax, VAT, PAYE, and UIF registrations
Collecting business and employee taxes
Processing tax returns and refunds
Administering tax compliance certificates (TCCs)
Conducting audits and enforcing tax laws

Smartbook Tip: You cannot register for VAT, PAYE, or file any tax returns until you have a SARS tax reference number — which is automatically generated after your company is registered with CIPC.

CIPC vs SARS: Key Differences

Here’s a simple breakdown comparing the two:

Aspect	CIPC	SARS
Full Name	Companies and Intellectual Property Commission	South African Revenue Service
Main Function	Registers and regulates companies	Manages and collects taxes
What It Issues	CoR documents (e.g. CoR14.3 certificate, Disclosure Certificates)	Tax reference numbers, VAT and PAYE registration numbers
Annual Obligation	File CIPC Annual Returns	File SARS Tax Returns (ITR14, VAT201, EMP201, etc.)
Penalty for Non-Compliance	Company may be deregistered	Business may face tax penalties, interest, or audits
Website	https://cipc.co.za	https://sars.gov.za

How CIPC and SARS Work Together

Although CIPC and SARS are separate entities, they share information electronically.

When you register a company with CIPC:

Your business details are automatically sent to SARS.
SARS generates a tax reference number for your new company.
You’ll receive this number via SMS or email within a few days.

From that point on, you must keep both institutions up to date — CIPC for company structure and SARS for taxes.

Example: How They Work in Practice

Let’s say you start Smartbook Consulting (Pty) Ltd:

Step 1 — Register with CIPC:
- You get your CoR14.3 company certificate.
- CIPC records your directors, name, and registration number.
Step 2 — SARS Automatically Issues a Tax Number:
- Within a few days, SARS sends your new company tax number.
Step 3 — File Annual Returns:
- You file your CIPC annual return to stay “In Business.”
- You file your SARS income tax and VAT returns to stay tax-compliant.

Smartbook Tip: Even if your company made no income, you must still file both CIPC and SARS returns every year.

How Smartbook Can Help You

Smartbook helps South African business owners manage both sides of compliance — CIPC and SARS — under one roof.

Well:

Register your company with CIPC
Retrieve your SARS tax reference number
File your CIPC annual returns
Register you for VAT, PAYE, and UIF (if needed
Keep you fully compliant year-round

Just send us your company name or registration number, and we’ll confirm your CIPC and SARS status within 24 hours.

Frequently Asked Questions (FAQ)

1. Are CIPC and SARS the same thing?

No. CIPC registers companies, while SARS manages taxes.

2. Do I need to register with both?

You register once with CIPC, and SARS automatically creates your tax number — but you’ll need to log in to SARS to activate VAT or PAYE.

3. What happens if I only register with CIPC?

Your company exists legally, but you’ll still need to file SARS tax returns to remain compliant.

4. Does SARS know if I didn’t file my CIPC annual return?

Yes. CIPC and SARS systems are linked — so non-compliance with one can trigger issues with the other.

5. Can Smartbook manage both CIPC and SARS compliance for me?

Absolutely. Smartbook handles all registrations, filings, and renewals to keep your business fully compliant.

Final Thoughts

Think of CIPC as the office that registers your business, and SARS as the one that taxes it.

Both are essential, and both have separate filing requirements.

If you want to stay compliant — and avoid penalties — Smartbook can handle both your CIPC and SARS obligations for you.