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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