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How to Register a IT / Software Company in South Africa

IT and software companies have one of the lightest regulatory stacks in South Africa - there's no sector regulator like PSIRA or CIDB. Most of the work is around tax, BEE for B2B sales, and (if you employ people) the standard payroll chain.

Time to first legal contract: 1-3 weeks for a software-only Pty selling to private clients. 4-6 weeks if government is on the roadmap.

The full stack

  1. 1

    Register your Pty Ltd at CIPC

    Cost: R175 + R50 nameTime: 1-3 working days

    Short-form MOI is fine. If you'll take on investors, replace it with a long-form MOI when shareholding gets complex.

  2. 2

    SARS company tax registration

    Cost: FreeTime: Same day
  3. 3

    VAT registration (only if turnover crosses R1m)

    Cost: FreeTime: 21-30 days

    Voluntary above R50k. SARS verifies the business is real before issuing a VAT number.

  4. 4

    UIF + PAYE (when you hire)

    Cost: FreeTime: 1-7 days
  5. 5

    BBBEE affidavit (most IT Ptys are EME under R10m)

    Cost: FreeTime: Same day

    Crucial if you're selling to enterprise or government. /tools/bbbee-affidavit" target="_blank" rel="noopener" style="color:#0f766e;text-decoration:underline;">https://www.ourpower.co.za/tools/bbbee-affidavit

  6. 6

    ICASA registration (only if you provide telecoms / ISP services)

    Cost: VariableTime: 8-12 weeks

    Most software shops do not need this.

  7. 7

    Section 12J / venture-capital structure (if raising)

    Cost: Legal feesTime: Variable

    Optional. Only relevant if you're raising VC and want SARS-incentivised investors.

  8. 8

    Open a business bank account

    Cost: R50-R250/monthTime: 1-3 weeks

    Stripe Atlas-style global banking is harder; most SA software founders use FNB / Capitec / Mercury (US) for cross-border revenue.

  9. 9

    CSD registration (only if you sell to government)

    Cost: FreeTime: 1-2 weeks

Common mistake

Registering for VAT voluntarily before you actually need it. Voluntary VAT means SARS audits, monthly admin, and zero benefit if your customers are end-consumers who can't claim VAT back.

Tools to help

Setting up a it or software company?

IT or software company businesses have an industry-specific compliance stack on top of CIPC. Tell us where you're stuck or what's confusing - we'll help.

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Other industries

How to register a security company

A registered security company in South Africa needs more than a CIPC certificate.

How to register a construction company

Construction is one of the most paperwork-heavy stacks in South Africa.

How to register a cleaning company

Cleaning is one of the easier stacks to set up: no sector regulator like PSIRA or CIDB, but the BEE and tender side matters because cleaning contracts are heavily B2B and government.

How to register a transport / trucking company

Transport companies need a Pty plus an operating licence regulated by the National Land Transport Act (NLTA).

How to register a catering company

Catering combines a standard Pty with municipal Certificate of Acceptability for any premises that handles food.

How to register a restaurant

A restaurant is essentially a catering company with fixed premises and (usually) a liquor licence.

Sources: CIPC fee schedule, sector regulators (PSIRA, CIDB, NHBRC, Liquor Boards). General guidance for it / software company setup, not legal or tax advice. Verified 2026-05-03. Talk to an accountant or attorney for your specific situation.

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