Thinking of Starting a VA Business? Here’s How to Legally Register Your Business in South Africa

Starting a Virtual Assistant (VA) business is one of the best ways to work online, be your own boss, and create a flexible income.

But before you land your first client, there’s one crucial step you don't want to sleep on!

Many new VAs skip this part because they think it’s overwhelming or unnecessary. But trust me, setting up your business correctly from the start will save you a lot of stress later!

Let’s break down the basic steps to legally start your VA business.

Step 1: Choose Your Business Structure

Before registering your VA business, you need to decide on the legal structure. This will determine how you pay taxes, your personal liability, and how much admin you’ll need to do.

These are some common options in South Africa:

• Sole Proprietor (Best for Beginners) – Simple setup, but you’re personally responsible for business debts.

• Private Company (Pty) Ltd – More professional, separate from your personal assets, but requires more admin.

• Partnership – If you plan to start with a business partner.

Not sure which one to choose? In the next membership training, I walk you through the pros and cons of each so you can make the right decision.

Step 2: Register Your Business Name & Entity

Once you’ve decided on a structure, it’s time to officially register your business.

In South Africa, you register your business with CIPC (Companies and Intellectual Property Commission).

🛠 Basic registration steps:

✔ Check if your business name is available

✔ Submit an application online via the CIPC website

✔ Pay the registration fee

✔ Receive your official business registration documents

📌 Need help with this? My Business Setup Checklist inside my membership includes direct links and step-by-step instructions.

Step 3: Get a Business Bank Account

Separating your personal and business finances is essential to avoid tax issues. Once your business is registered, you can:

• Open a business bank account

• Set up an invoice system for clients

• Track your income & expenses properly

📢 Want my full Business Finance Guide? Join my membership to get access to tools for managing your money! Here is a bookkeeping template you can purchase separately 

Step 4: Register for Tax & Understand Your Obligations

As a business owner, you’ll need to register for tax with SARS (South African Revenue Service) or the equivalent in your country.

📌 Things to consider:

• Do you need to register for VAT? (Only if your earnings exceed the threshold)

• How do you track & file business taxes?

• Should you work with an accountant or tax consultant?

Information about VAT and Tax you need to know. 

This was copied from the SARS website: 

It is mandatory for any business to register for VAT if the income earned in any consecutive twelve month period exceeded or is likely to exceed R1 million​. 

Any business may choose to register voluntarily if the income earned, in the past twelve month period, exceeded R50 000. 

A small business that is registered as a micro business under the Sixth Schedule of the Income Tax Act may also register for VAT and may elect to submit returns and payments every four months, ending on the last day of June, October and February.

Here’s some more info regarding tax as a business - source - 

Understanding Tax Obligations When Starting a Business

If you're an entrepreneur looking to start a business, it's essential to understand the tax responsibilities that come with it—whether you operate as a legal entity or in your personal capacity.

There are also various ways to simplify tax compliance, such as reducing administrative requirements and taking advantage of applicable tax incentives and rates.

Registering Your Business with CIPC

Once you've decided on the type of business entity you want to establish, and it falls under a legal entity, you must register it with the Companies and Intellectual Property Commission (CIPC).

Legal Entities That Must Register with CIPC and SARS for Corporate Tax:

• Listed public companies

• Unlisted public companies

• Private companies

• Close corporations (Note: No new close corporations have been registered since 1 May 2011)

• Co-operatives

• Non-profit companies

• State-owned companies

• Collective investment schemes

• Other registered entities

• 
  

Starting a Business Without a Legal Entity

If you choose not to register a formal legal entity, you can operate as:

• A sole proprietor – You will be taxed on business profits in your personal capacity.

• A partnership – Each partner is taxed individually on their share of taxable profits, as the partnership itself is not separately registered for income tax.

Tax Incentives and Preferential Rates

Certain businesses may qualify for tax benefits:

• Small Business Corporation (SBC) Incentive: Available to close corporations, co-operatives, and private companies that meet specific criteria.

• Turnover Tax System: Open to qualifying natural persons and companies as an alternative tax structure.

Taxes can be tricky, but I break it down step-by-step in my training.

Step 5: Set Up Your Contracts & Legal Documents

One mistake many VAs make? Starting work without a contract. This can lead to scope creep, unpaid work, or legal issues.

At minimum, you need:

✔ A VA Client Contract (outlines services, payment terms, and deadlines)

✔ A Privacy Policy (if you collect client data)

✔ An Invoice & Payment Agreement

📢 Want done-for-you contract templates? These are inside my VA Business Starter Pack in the membership! You can also purchase them here.

VA Contract Template Pack

Buy Now

Ready to Set Up Your VA Business the Right Way?

If this sounds like a lot, don’t worry—I’ve got you covered! 🎯

📌 Join My Membership for Full Training: Inside, you’ll get detailed walkthroughs, templates, and expert guidance to legally set up your VA business with confidence.

📌 Bonus: Get My Business Setup Checklist & Legal Guide: A step-by-step resource that walks you through registration, taxes, contracts & more!

🔗 Join the membership here

Final Thoughts

Starting a VA business is exciting, but getting your legal and financial setup right is key to long-term success. Take the time to make decisions at the start so you can grow with confidence and credibility.

What’s your biggest question about setting up your VA business? Drop it in the comments!