Starting a company? Your first-year accounting and tax checklist

Last reviewed October 2026.

A new company’s first year comes down to seven things: register it properly, set up the books, register for the right taxes, run payroll once you hire, file the first tax return, prepare annual financial statements, and file the first CIPC annual return. Here’s what each involves.

1. How do you register the company with CIPC?

A standard private company (Pty Ltd) is registered with the Companies and Intellectual Property Commission. CIPC’s own fee is R125 if you use the registration number as the name, or R175 with a reserved name. Professional services to complete the full process add to that.

C-Consult registers a standard Pty Ltd for R3,000 + VAT. That covers name reservation, the Memorandum of Incorporation, director confirmation, the registration certificate, appointment of the registered representative at SARS, and the initial share allotment.

2. What do you need to set up the books?

Keep company money separate from personal money from day one, with a business bank account. Then choose accounting software: Xero, Sage, Zoho and QuickBooks all work well for small companies. Monthly bookkeeping covers bank reconciliation, invoice capture, expense allocation and keeping the general ledger up to date.

3. Which taxes does a new company register for?

Income tax registration is automatic for a new company. PAYE is registered separately once you employ staff. VAT registration becomes compulsory once taxable turnover passes R2.3 million in any 12 months, and you can register voluntarily from R120,000. Both thresholds rose on 1 April 2026, from R1 million and R50,000. VAT registration with C-Consult is R5,000 + VAT and covers the eligibility assessment, the VAT101 form, submission to SARS and follow-up on confirmation.

4. When does payroll start?

Once you take on your first employee, payroll runs every month: calculating PAYE, UIF and SDL, issuing payslips, and submitting the EMP201 return to SARS. C-Consult runs payroll at R85 per employee per month + VAT.

5. When is the first company tax return due?

After year-end, the company submits its income tax return (ITR14) to SARS, with the tax worked out from the signed financial statements.

6. Does a small company need annual financial statements?

Yes. Every company needs annual financial statements: a balance sheet, income statement, cash flow statement and notes, prepared in line with IFRS for SMEs. Companies above the Public Interest Score threshold that are not otherwise required to be audited also need an independent review.

7. What is the CIPC annual return?

Every company files an annual return with CIPC each year. The window opens on the anniversary of the registration date and closes 30 business days later, and late filing attracts penalties. Beneficial ownership information must be up to date before CIPC accepts the return.

Prefer one monthly fee?

C-Consult’s monthly packages start at R2,850 per month ex VAT. Tier 1 covers bookkeeping for up to 100 transactions a month, VAT returns if you’re registered, annual financial statements, the company tax return, and the CIPC annual return with beneficial ownership filing. See all three packages.

Before you act: this is general information, not advice for your situation. Book a free 30-minute consultation to talk through your own position.

Related: Company and VAT registration, Bookkeeping and financial statements, Payroll, Frequently asked questions.

Sources: SARS, “Value-Added Tax” (sars.gov.za), thresholds effective 1 April 2026. CIPC fees as listed on BizPortal, per GovChain (10 June 2026). CIPC annual return rules, per ClearComply (20 March 2026).