BusinessX Consultants — Registered in South Africa · Operating since 2016
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Frequently Asked Questions

Everything You Need to Know About Shelf Companies in South Africa

Plain-language answers to the questions we get asked most. If you can't find what you're looking for, call or WhatsApp us directly.

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General Questions
What is a shelf company?

A shelf company is a private company that was incorporated some time ago and has since been kept dormant โ€” no trading, no liabilities, no employees. It has simply been maintained in good standing with CIPC and SARS.

When you purchase a shelf company, you acquire a ready-made entity complete with a registration number, a tax number, and โ€” in our case โ€” an active VAT registration. You become the new director and can begin trading immediately.

Why would I buy a shelf company instead of registering a new one?

Two main reasons: speed and VAT registration.

Registering a new company takes a few days through CIPC, but obtaining VAT registration with SARS can take anywhere from three to six months โ€” and there is no guaranteed timeline. If you need to invoice, bid on a tender, or satisfy a client requirement for a VAT number today, waiting is not an option.

Additionally, a company with a registration date of 2008 or 2012 signals longevity to banks, suppliers, and clients in a way that a company registered last month simply does not.

Is buying a shelf company legal in South Africa?

Yes, completely. The purchase and transfer of a shelf company is a standard commercial transaction governed by the Companies Act, 71 of 2008. The process involves a formal change of directorship and, where required, a change of registered office with CIPC โ€” all done through the proper regulatory channels.

We do not engage in any transaction that is not fully compliant with South African company law and SARS regulations.

Who typically buys a shelf company?

Our clients include:

  • Entrepreneurs and contractors who need a VAT number immediately to tender or invoice
  • Established businesses that require a second entity โ€” a subsidiary, a separate trading vehicle, or a special-purpose entity
  • International companies entering South Africa who need a locally registered VAT-active entity
  • Businesses that have been trading informally and need to formalise quickly to meet a client or tender requirement
VAT & SARS
Is the VAT registration genuinely active with SARS?

Yes. Every company we sell has an active, verified VAT registration with SARS at the time of transfer. We do not list or sell companies with pending, suspended, or deregistered VAT status.

You will receive the VAT registration certificate as part of the transfer documentation pack.

Are there any outstanding SARS liabilities on the companies you sell?

No. This is a non-negotiable requirement of our inventory. Every company is verified clean before we offer it for sale โ€” no outstanding VAT returns, no income tax liabilities, no PAYE arrears, no penalty notices.

The company's SARS tax compliance status is provided to you before you commit to the purchase, and confirmed in writing at the point of transfer.

Can I immediately issue VAT invoices after the transfer?

Yes. Once the transfer is complete and you are the registered director, the company's VAT number is operational and you may immediately raise tax invoices showing that VAT number. There is no waiting period.

What VAT returns will I need to submit going forward?

Once you own the company, you are responsible for all SARS obligations going forward, including bi-monthly VAT returns (VAT201) and annual income tax returns. We strongly recommend engaging a registered tax practitioner or accountant to manage your ongoing SARS compliance.

For the period prior to your acquisition, all returns have been submitted and the company's compliance status is clean.

Will SARS notify me after the director change?

SARS is notified of directorship changes through the CIPC process. It is also advisable to update the registered representative on the company's SARS eFiling profile to reflect you as the new director. We guide you through this step as part of our post-transfer support.

The Process
What information do I need to provide?

We require five pieces of information to complete the transfer:

  • Your South African ID number (or passport number for foreign nationals)
  • Your cell phone number
  • Your email address
  • The physical address where the company will be registered and operate
  • Your personal residential address

These are the legal requirements under the Companies Act and SARS regulations for a valid change of directorship.

How long does the transfer take?

For clients who submit their details before midday, we initiate the transfer the same business day. The CIPC processing itself typically reflects within one to three business days, though the company's VAT registration remains valid and operational throughout.

We will keep you updated throughout the process and confirm completion in writing.

What documents will I receive on transfer?

You will receive a complete documentation pack, which includes:

  • CIPC company registration certificate (CoR14.3)
  • Memorandum of Incorporation (MOI)
  • Proof of VAT registration with SARS
  • Resolution appointing you as director
  • Confirmation of clean SARS tax compliance status
Can I change the company's name after purchase?

Yes. You can apply to CIPC to change the company's name after transfer. The company registration number and VAT number do not change when a name change is made. We can advise on the process, though the name-change application is your responsibility post-transfer.

Costs & Timing
How much does a shelf company cost?

Pricing depends on the age bracket of the company. Older, more established companies carry a higher price than recent ones โ€” reflecting both their scarcity and the practical value their registration date provides.

Contact us directly for current pricing on specific age brackets. We do not publish a fixed price list because availability changes regularly, but we are transparent about costs and there are no hidden charges or post-sale fees.

Are there any ongoing fees after purchase?

No ongoing fees are payable to us after the transfer. The company is yours outright.

You will, however, be responsible for standard statutory obligations going forward: the CIPC annual return fee (a small annual amount), and your SARS compliance obligations. We recommend engaging an accountant or tax practitioner to manage these.

Do you offer same-day transfer?

Yes โ€” for clients who submit their five required details and settle payment before midday on a business day, we initiate the transfer that same day. The CIPC documentation is issued within one to three business days thereafter.

If you have a tender deadline or urgent need, please call or WhatsApp us directly so we can prioritise your transfer.

Still have a question?

Our team is available by phone, email, and WhatsApp during business hours.

Ready to Get Started?

Same-day transfer possible. Clean documentation included. No hidden costs.