Just Registered Your Business? Here Are the 5 Contracts You Need First

Registering a business is the exciting part.

You have your company registration number, your bank account is open, and you are ready to start.

Legal documentation is the last thing on your mind.

But the first few months of a new business are also when most of the important relationships are formed — with clients, suppliers, contractors, and business partners.

And relationships formed without proper contracts are relationships waiting for problems.

The Five Contracts Every New South African Business Should Have

Service Agreement (Client Contract)

If you provide services to clients, you need a written agreement before you start work.

It does not matter how small the job or how well you know the client — without a service agreement, you are working on trust alone.

A Service Agreement defines what you will deliver, by when, at what price, and what happens if either party does not meet their obligations.

It protects your right to be paid and limits your liability for what is outside your control.

Employment Contract

The moment you hire your first employee, you have taken on significant legal obligations under South African labour law.

An employment contract documents the terms of employment — salary, hours, leave, notice period, restraint of trade, and confidentiality — and ensures both you and your employee know exactly where you stand.

Without one, BCEA defaults apply, disputes are harder to resolve, and disciplinary processes are far more complicated.

Non-Disclosure Agreement

Before you share your business idea, your client list, your processes, or your financial information with anyone — a potential partner, a supplier, a consultant — get an NDA signed first.

An NDA creates a legally binding obligation of confidentiality.

It protects your information if the other party decides to use it against you, and it signals to the other side that you are a serious business that protects its intellectual assets.

Supplier or Contractor Agreement

Most new businesses rely on external suppliers and contractors in their first year — a developer, a designer, a manufacturer, a distribution partner.

Without a written agreement, pricing, delivery obligations, quality standards, and IP ownership are all undefined.

A Supplier Agreement protects you when a supplier fails to deliver.

A Contractor Agreement ensures that the work created belongs to your business, not to the person you paid to create it.

Website Terms and Conditions and Privacy Policy

If your business has a website — and it almost certainly does — you need both a Terms and Conditions page and a Privacy Policy.

These are legal requirements under the Consumer Protection Act and POPIA.

Without a Privacy Policy, collecting any personal information through your website puts you in breach of POPIA.

Without T&Cs, you have no contractual basis for how visitors use your site or how you limit your liability for your content.

Get All of These — and More — From Contracts4Biz

Contracts4Biz offers more than 48 professionally drafted, South African-specific contract templates — from the five listed above to shareholders agreements, PAIA manuals, joint venture agreements, and beyond.

Every template is drafted by SchoemanLaw Inc., written in plain language, and downloadable immediately.

Learn more about the full contract library in the Contracts4Biz Resources section.

Not sure where to start?

Download our free e-books: Start-Ups (no employees) or SMEs (with employees) or take our free risk assessment.

Starting your business on a solid legal foundation does not have to be expensive or complicated.

Contracts4Biz makes it accessible for every South African entrepreneur.