If you would like any assistance with registering you Incorporation, please use the following link:
www.swiftreg.co.za/Swiftreg/p...
We at SwiftReg look forward to assisting you. We have a dedicated call center 021-595 44 33 (available during business hours) alternative please browser our website on www.swiftreg.co.za/index.aspx for more services.
And now for the video script... :)
Incorporations are the entity used by professionals such as lawyers, doctors or engineers or any other recognised professionals which are regulated by a governing body, council or institute. In order to be a director or a shareholder of an incorporation you must be a registered professional with a practice number issued by your accredited governing body.
Incorporations are similar to partnerships where the partners are all jointly and severally liable for the liabilities of the company. This means that incorporations do not offer the same limited liability protection as a (Pty) Ltd. The protection for the directors of an incorporation comes in the form of professional indemnity insurance and not limited liability protection.
So why would professionals register incorporations? The main reason is to assure the clients that the directors and shareholders of the incorporation are all professionals and regulated by their respective institutes or councils. For example, doctors and dentists are governed by the Health Professional Council of South African and engineers by the Engineering Council of South Africa. These council ensures that quality and ethical standards, accreditation, training of the professions are maintained and enforced. This gives clients seeking their services peace of mind that there is adherence to the relevant professional standards.
Let me explain how easy it is to register an incorporation.
Once you are logged in the first step is to choose the name for your Incorporation. It is a good idea to be as creative as possible to try to find a unique name to limit the chance of rejection by CIPC. If your proposed names are rejected it will slow down the overall registration process and create an extra cost of R110 to submit a further 4 proposed names. Try to use a description of your business in the name of your company for example: Orion Civil Engineering and not just Orion. There may be many companies using the Orion already, but none in the field of civil engineering, so try to stay away from one word names.
The next section is where you indicate the number of directors and shareholders. When it comes to incorporations the directors and the shareholders must be the same individuals, meaning each director must be a shareholder and each shareholder must be a director.
All incorporations are required to select a financial year end which is the date that your incorporation needs to submit its financials to SARS. Our system defaults the date to the end of February as it coincides with government budget when new tax tables are released. This just makes the administration for your accountant easier.
The next section is for the registered address and the director and shareholder’s information. There are copy and paste buttons which are handy to speed up the process.
All incorporations must select an amount of authorised shares. We have specifically defaulted to 1200 shares. Since you may not own a fraction of a share we have use 1200 as it is divisible by most numbers. It is important to understand that the number of authorised share capital has nothing to do with the valuation of the incorporation. Should you want to know on authorised share capital and the implication of share transfers (Screen shot video of Get your fair share) I have made a detailed video on this topic.
Finally, you will then be asked to confirm the details of the person with whom we should correspond and confirm that all the information is correct in order to for us to proceed. This will take you to the payment portal which you can either pay via credit card or EFT.
The data capturing for your new incorporation is now complete. All we require now are the supporting documents which must accompany your application to CIPC.
Next is the Limited Power of Attorney or LPOA which gives SwiftReg the authority to register the incorporation on your behalf. Please be aware this is a LIMITED power of attorney and is restricted to act only on your behalf to register your incorporation. It gives us no other powers, but without it we can’t lodge the incorporation with CIPC for you. It needs to be signed by all of the Directors and Shareholders.
And finally, if you have paid by EFT you need to upload the Proof of payment as without this the back office will not start the registration. Once we have received all 3 of these documents we can start with the process to register your incorporation.