How To Start A Record Label In 5 Steps

In this article, I'll be going through the steps you will need to follow in order to start a record label(on paper). For the purpose of this article, I'm going to call my pretend label 'Lesiba Records'. 

1. Register As A Business

I will need to register Lesiba Records as a business with the CIPC. This will give my record label a legal identity so I can perform legal actions as a business e.g recording contracts. This isn't just a necessary step for record labels, but for all businesses. The best option for me is to register Lesiba Records as a private company so that in case of a lawsuit, the business will be sued and not me personally. Below is a post that covers all of the costs associated with starting a business.

Company registration costs R175 & takes a maximum of 24 hours. Login on https://t.co/R2oU590O4V to register. Registration is 100% online - no docs required.

We also offer a range of related services at no cost.#BizPortal is a product of @theCIPC#CIPC #CompanyRegistration pic.twitter.com/evxVkx5Tqm

— BizPortal (@BizPortalGovZa) May 10, 2021

2. Register With SAMRO

My next step would be to register with SAMRO as a publisher. SAMRO is responsible for administering performant rights. These are the royalties my record label would receive for the commercial use of music from Lesiba Records. This means that music released under Lesiba Records will earn royalties when played on tv, radio etc. If you still don't understand it, SAMRO defines performance royalties as " the rights to perform music in public and is part of copyright law". It is also important to note that SAMRO states "Performing Rights belong to the person or people who own the music. That’s music composers, lyricists or music publishers who wrote, created or produced it. If you want to find about more about how SAMRO works from a creators point of view, click here to read my 'Creators Guide To SAMRO'. SAMRO just announced that they will be offering creators R30 000 towards hosting an online or pre-recorded concert. Check it out below.

The @ConcertsSA Digital Music Fund is open for applications again. Successful applicants will receive R30 000 to use towards hosting an online (live or pre-recorded) music concert. The deadline is September 8th. So, hurry.

For more info, go to https://t.co/UfuVbE4sAV. Good luck! pic.twitter.com/Ul0doclRYX

— SAMRO (@SAMROMusic) September 6, 2021

3. Register With CAPASSO

The next step would be to register with CAPASSO as a publisher. The reason you would register with CAPASSO is to receive what are called Mechanical Rights. According to CAPASSO Mechanical Rights "arises when a musical work is reproduced or transferred from one format to another (from a master tape to a CD for example). " Did you know you can get royalties from your music being on YouTube? Click here to read my article on CAPASSO to find out more. Below is a post that explains music rights a bit better.

Understanding Licensing...#capasso#licensing pic.twitter.com/G8DC3CvEyM

— CAPASSO (@CapassoHub) September 7, 2021

4. Register With SAMPRA

The last collective management organisation you would need to register with is SAMPRA. SAMPRA is responsible for administering Needletime Rights and according to SAMPRA these are "royalties paid out for the public performance of music. These royalties are distributed to recording artists and record labels." So if my artist music is played in public spaces like malls they could receive Needletime Right. It's important to note that these organisations are not in competition with each other and you should register with all of them in order to maximise returns from royalties. 

#SAMPRAFAQs: If my song is played on the radio today, when should I possibly expect my royalties? pic.twitter.com/Z0IzfFOC14

— SAMPRA (@OfficialSAMPRA) August 12, 2021

5. Register With RISA

The final step is to register your register with RISA. RISA provides what is called ISRC codes which are used to track sales for your music. RISA uses ISRC codes to track the sales performance of music. RISA is also the organisation responsible for issue Gold, Silver and Platinum certifications in South Africa. Click here to read my guide on RISA. Check out the blog post below on a free introductory course to Music Business. 

Introduction to the Music Business

Learn the latest about the rapidly changing music industry from recording, publishing, and distribution to legal issues confronting music commerce.https://t.co/EHNdCn5axj

— RiSA (@RiSARAV) September 6, 2021