Director

“What is a director?”

A director is someone who manages and makes decisions for a company.

They’re legally responsible for overseeing the company’s operations and making sure it follows the law.

Every registered company in South Africa must have at least one director, and their name is officially recorded with CIPC.

“What does a director actually do?”

Directors play an important role in running a company. Their responsibilities include…

  • Making key decisions about the business’s direction
  • Managing finances and company resources
  • Ensuring compliance with tax and legal requirements
  • Appointing other directors or shareholders (when needed)
  • Filing annual returns and keeping company details updated with CIPC

They don’t necessarily have to BE the owner, but they are the people held legally accountable for how the business is run.

“Who can be a director?”

To become a director in South Africa, you must:

  • Be at least 18 years old
  • Not be declared legally disqualified (e.g. due to fraud or insolvency)
  • Agree to take on the responsibilities of a director

You don’t have to be a South African citizen, and your company can have one or multiple directors, depending on your setup.

Here’s a real-life example of a director

Let’s say you register a business to sell handmade furniture online.

If you’re the one making decisions, managing finances, and running the operations, then you’re the director.

Even if someone else owns shares in the company, the director is the one responsible for daily decision-making and compliance.

“Why does it matter who the director is?”

Because the director is:

  • Legally accountable for the company’s actions
  • The one CIPC and SARS will contact for any compliance matters
  • Required to sign off on important documents and applications
  • Responsible for submitting updates (like address or ownership changes)

If you’re listed as a director, you’re the one in charge — and you’re the one that’ll be held responsible for the company’s obligations.

“Can you change the director of a company?”

Yes! If someone resigns or a new director is appointed, you must update the director details at the CIPC.

Govchain can help you update or appoint company directors online, quickly and correctly.


Back to Terms