Cape Town, often celebrated for its innovation and entrepreneurial energy, is South Africa’s top-ranked metro for ease of doing business. As the country’s second-largest municipal economy, it plays a vital role in job creation and national economic performance. Its supportive infrastructure, dynamic startup culture, and strong institutional backing make it an ideal place to launch and grow a business.
1. Understand the business climate
Cape Town is known as the startup capital of South Africa. The city actively supports Small, Medium, and Micro-sized Enterprises (SMMEs) through policy, infrastructure, and funding mechanisms. Whether you’re a first-time founder or a global investor, Cape Town offers fertile ground to test, grow, and scale a business.
2. Register your business
To set up a business, you’ll need to:
- Choose a business structure: Options include Sole Proprietor, Private Company (Pty) Ltd, Public Company, or Partnership.
- Register with the CIPC: All businesses except sole proprietorships must register with the Companies and Intellectual Property Commission (CIPC) online: www.cipc.co.za
- Obtain a tax reference number from the South African Revenue Service (SARS)
- Register for VAT if your revenue exceeds the threshold
3. Set up a bank account
Open a South African business bank account. Most major banks in Cape Town (Standard Bank, Nedbank, FNB, ABSA, etc.) offer tailored SME solutions. You’ll need your company registration documents and proof of address.
4. Secure funding
There are multiple funding routes available:
- Government grants and incentives
- Private equity and venture capital
- Angel investors
- Crowdfunding platforms
- Startup competitions and incubators like The Business Hub or LaunchLab
5. Explore support platforms
Tap into resources provided by:
- The Business Hub (City of Cape Town’s SMME support centre)
- Wesgro (Western Cape’s official tourism, trade and investment promotion agency)
- SEDA (Small Enterprise Development Agency)
6. Visa and legal requirements (for international founders)
If you’re a foreign national:
- Apply for a Business Visa via the Department of Home Affairs
- Submit a business plan and proof of capital (currently ZAR 5 million minimum unless waived)
7. Find your workspace
Cape Town offers a wide range of commercial spaces:
- Central Business District (CBD) for professional services
- Woodstock and Salt River for tech and creatives
- Industrial parks in Montague Gardens and Epping for manufacturing
8. Comply with labour and tax laws
- Understand the Basic Conditions of Employment Act
- Familiarise yourself with South Africa’s labour and tax systems
- Use payroll and accounting platforms to stay compliant
Final note:
Cape Town offers an unbeatable mix of lifestyle, infrastructure, and opportunity. Whether you’re launching a tech startup, a retail concept, or a manufacturing venture, the Mother City is ready to support your entrepreneurial journey. Reach out to The Business Hub or the Investment Facilitation Unit for tailored guidance.