CIPC Non Profit Company NPC how to register

If you would like any assistance with registering your NPC, please use the following link: https://www.swiftreg.co.za/Swiftreg/products/Non_Profit.aspxWe at SwiftReg look forward to assisting you. We have a dedicated call center 021-595 44 33 (available during business hours) alternative please browser our website on https://www.swiftreg.co.za/index.aspx for more services. And now for the video script... :)Non Profit Companies or NPCs are mostly welfare, faith based or community upliftment entities. There are many acronyms in this environment such as PBO, NPO, NGO, FBO and CBO.PBO = Public benefit OrganisationNPO = Non-Profit OrganisationNGO = Non-Government OrganisationFBO = Faith Based OrganisationCBO = Community Based OrganisationNPC = Non Profit CompaniesWhat these entities all have in common is that the profits are not enjoyed by individuals but rather reinvested into the purpose of the organisation. They can have employees but no owners or shareholders. NPCs are registered with CIPC in accordance with the Companies Act, while the other entities are either registered with the Department of Social Development or in the case of a community Trust with the Master of the High Court. If you intend to raise finance via donations, then an NPC is a preferred entity as it is governed by the Companies Act meaning there are more checks and balances in place which gives the funders greater peace of mind. In this video, I will explain how easy it is to register an NPC. The first step is to choose the name for your company. It is a good idea to be creative to try to find a unique name to limit the chances of rejection by CIPC. If your proposed names are rejected it will slow down the overall registration process and cost an extra R110 to submit a further 4 proposed names. Try to use a descriptive word in the name of your company for example: Orion Community Upliftment Project and not just Orion. There may be many companies already using the word Orion, but none working as a welfare organisation so try to avoid one word names.The next section is where you indicate the number of directors. An NPC must have a minimum of three; if you are planning to apply for a tax exemption, they may not be related to one another. Don’t worry too much about the exact number of directors at this stage as you can always add or remove directors at any stage even after the company is registered. Remember there are NO shareholders, so nobody owns the company.All companies are required to select a financial year end which is the date that your company needs to submit its financials to SARS. Our applications default the date to the end of February as it coincides with government budget when new tax tables are released. Next is the registered address of the organisation and the particulars of the directors. Once this is complete you will need to confirm the details of the person with whom we should correspond and confirm that all the information is correct in order to for us to proceed. This will take you to the payment portal which you can either pay via credit card or EFT.First is a copy of the identity documents of the directors which do not need to be certified. For smart card IDs we require both front and back which our systems automatically consolidate onto one page. Green ID books require just one scanned page. If you are a foreigner, we need a copy of your passport. Once the IDs are uploaded our staff will do a quality check as CIPC rejects all applications with poor quality scans.Next is the Limited Power of Attorney or LPOA which gives SwiftReg the authority to register the company on your behalf. Please be aware this is a LIMITED power of attorney and is restricted to act only on your behalf to register your company. It gives us no other powers, but without it we can’t lodge the company with CIPC for you. It needs to be signed by all of the Directors.It is important to know that NPCs, as well as the other types of non-profit companies are not automatically exempt from paying tax. Once this company registration is complete, a separate application needs to be made to SARS for tax exemption which is granted by the SARS Tax Exemption Unit (TEU). The timeframe to completion is dependent on CIPC which processes the application in chronological order, so the quicker the supporting documents are uploaded the faster we can submit your application. CIPC averages about 1 working day to approve the company name and another 3 working days to complete the registration. We then produce the MOI and to collate everything so the whole process takes about a week. This of course assumes that CIPC is running normally and not experiencing any operational issues. Once your company documents are completed we will notify your via email and sms. All your document will be stored indefinitely under your my purchases should you ever need to access them in the future.