SARS Registration: What It Is, Why It Matters, and How to Do It

If you’re running a business in South Africa — whether you’re a sole proprietor, freelancer, content creator, or the director of a company — you must be registered with SARS. This is the foundation of tax compliance, and without it, you can’t file returns, get a tax clearance, or operate legally.

Let’s break it down.


1️⃣ What Is SARS Registration?

SARS registration simply means getting a Tax Reference Number.
This number identifies you (or your business) in the tax system.

There are two types:

✔️ Individual Tax Registration

Automatically created when you start earning as an employee or when you register manually.

✔️ Company Tax Registration (Corporate Income Tax)

For registered companies (Pty Ltd).
Once you register with CIPC, the company is usually auto-registered with SARS — but sometimes it isn’t, and you must register manually.


2️⃣ Why SARS Registration Matters

Registering with SARS gives your business:

✔️ Legal compliance

You can operate without fear of penalties or audits.

✔️ Access to funding

Banks, investors, and funding bodies require a tax number.

✔️ Tender opportunities

You need a valid tax number + tax clearance for CSD.

✔️ Ability to file taxes

You cannot submit returns without being registered.

✔️ Prevents penalties

Unregistered income = big penalties + interest + audits.


3️⃣ Who MUST Register?

These people/businesses must register with SARS:

  • Employees earning above the tax threshold
  • Sole proprietors / hustlers / freelancers
  • Contractors
  • Content creators
  • Taxi owners & informal businesses
  • Pty Ltd companies
  • Anyone earning money that SARS sees as “taxable”

If you earn income, SARS wants to know.


4️⃣ How to Register With SARS

⭐ Option 1: Online (eFiling)

Create an eFiling profile, then select “Register for Tax”.

⭐ Option 2: SARS MobiApp

Fast and simple using your phone.

⭐ Option 3: Walk-in Branch (appointment required)

You submit documents in person.


5️⃣ Documents Needed

For individuals:

  • ID / Passport
  • Proof of address
  • Bank confirmation
  • Cellphone number + email

For companies (Pty Ltd):

  • COR14.3
  • Company registration docs
  • Proof of address
  • Directors’ IDs
  • Bank confirmation
  • Resolution (if practitioner submits for you)

6️⃣ What Happens After Registration?

You get a Tax Reference Number.
Then you must:

  • File annual income tax returns
  • Declare ALL income
  • Register for VAT (if over R1 million turnover)
  • Register for PAYE & UIF (if you have employees)
  • Maintain clean bookkeeping

Being registered is the first step — staying compliant is the real work.


Final Message for Entrepreneurs

Registering with SARS isn’t something to fear — it’s an investment in the future of your business. Being registered unlocks opportunities, builds credibility, and protects you from penalties.

Compliance = Growth.
Avoidance = Problems.

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