Terminology

Types of Companies

Company TypeSuffixMeaning
Private Company(Pty) LtdMost common business type. Cannot sell shares to the public. Limited liability.
Public CompanyLtdCan offer shares to the public. Usually listed on the stock exchange. Requires at least 3 directors.
Personal Liability CompanyIncFor professionals (lawyers, doctors, accountants). Directors are personally liable for debts.
Non-Profit CompanyNPCFormed for charitable or social purposes. Cannot distribute profits.
State-Owned CompanySOC LtdOwned by the government and serves public interests (e.g., Eskom).
Public Benefit OrganisationNo suffixTax-exempt organisation for public welfare (charity, religion, etc.). Must register with SARS.
Co-OperativeCo-opMember-owned business benefiting its members (e.g., farming co-ops).
Foreign (External) CompanyNo suffixA foreign company registered in SA to operate locally.

Institutions Companies Can Be Registered With

InstitutionPurposeWho Needs It?
Companies and Intellectual Property Commission (CIPC)Registers companies, cooperatives, trademarks, patents, and copyrights.All formal businesses must register with CIPC.
South African Revenue Service (SARS)Registers for tax, VAT, PAYE, and customs duties.All businesses must register for tax; those with turnover over R1 million must register for VAT.
National Credit Regulator (NCR)Regulates businesses involved in lending, credit provision, or debt counselling.Businesses offering loans, credit facilities, or debt collection services.
Central Supplier Database (CSD)Regulates businesses involved in lending, credit provision, or debt counselling.Businesses wanting to supply goods/services to government departments.
Financial Sector Conduct Authority (FSCA)Regulates financial service providers (FSPs), investment firms, and insurance providers.Financial advisers, brokers, investment firms, and insurance agencies.
Bargaining CouncilsRegulates employment conditions and compliance in specific industries.Businesses in industries such as construction, metalwork, and security.
Department of Labour (UIF, SDL & COIDA)Registers employees for Unemployment Insurance Fund (UIF), Skills Development Levy (SDL), Compensation for Occupational Injuries and Diseases (COIDA).Employers with staff members.
Foreign (External) CompanyCertifies businesses for B-BBEE benefits.Businesses that want to work with government or corporate clients.
Import and Export Registration (SARS Customs)Enables businesses to import and export goods legally.Companies involved in international trade.
Construction Industry Development Board (CIDB)Regulates contractors bidding for public sector construction projects. Why is CIDB Registration Important? For Contractors: it allows them to work on public sector construction projects, including government tenders. For Project Owners: ensures that contractors are compliant with industry standards and capable of executing construction projects. For Compliance: CIDB registration categorises contractors based on their capabilities and experience, ensuring that the right contractor is selected for each project.Contractors bidding for public-sector work, and the project owners who engage them.

Other Terminology

TermDescription
PAYE (Pay-As-You-Earn)A tax system where employers deduct income tax from employees' salaries before paying them. Employers must register for PAYE with SARS and submit monthly payments to SARS.
TCC (Tax Clearance Certificate)A document that confirmed a taxpayer's compliance with SARS (no outstanding taxes or returns). It has been replaced by the Tax Compliance Status (TCS) PIN, which allows businesses and individuals to verify their tax status online.
Beneficial OwnershipThe person(s) who ultimately own or control a company and benefit from its profits, even if the company is registered under another name. Must be declared when registering a company or updating ownership. Applies to private companies, personal liability companies, and non-profits. Filed via the CIPC Beneficial Ownership Register.
Public Officer / Registered RepresentativeThe person appointed to represent a company for tax and eFiling purposes with SARS.
National Road Traffic Act Certificate (NRTC)A certificate issued by the South African Department of Transport or an accredited institution confirming that a vehicle is roadworthy and complies with the National Road Traffic Act standards. Confirms the vehicle is roadworthy and safe for driving.

Content note: this page was transcribed directly from the live site's Terminology tables. A few rows there had apparent copy/paste mix-ups (for example, the Central Supplier Database and National Credit Regulator rows shared identical "Purpose" text, and the "Public Officer / Registered Representative" and "National Road Traffic Act Certificate" rows had descriptions that didn't match their labels). I've corrected the two that were clearly swapped and left a note here rather than guessing at the rest - worth a quick review with your team before this goes live.