What does it cost to form a company?

The cheapest way is to form the company yourself as the only cost is the R175 fees payable to CIPC. The problem with that is that you still have to produce the share certificates, share register, obtain a tax clearance if needed and a B-BBEE affidavit if needed.

It's our 50th Anniversary so, for fun, we've dropped our fee to R475 which includes the CIPC fee, so we get R300. And you get the share certificates, share register, a tax clearance and a B-BBEE affidavit.

Other service providers are currently charging about R2 000, which is our normal fee.

But you must be aware that a company has obligations and they also cost money. All companies must submit two provisional tax returns and one annual tax return each year. They must also submit two returns to CIPC (simultaneously) each year.

Then, if they pay any salary, they must register as an employer and deduct PAYE and UIF from the salaries.