Things You Need to Know Starting Business In SA

South Africa is buzzing with entrepreneurs because it is rapidly growing in population. But you can blindly do business. Lack of knowledge of the necessary processes and interaction rules can be a problem, and more importantly, it costs slightly more than some initial lessons.

How can where to register companies

You can register your business online with the Corporate and Intellectual Property Commission (CPIC). Yes, you can do it yourself (if you know the process). This process is actually very simple. It costs between R125 and R475 depends on the type of business you are registering. You should give your business a preferred name on the same web page.

Registering for VAT

You do not need to register for VAT immediately. In fact, VAT registration is voluntary if income cross R50,000 in the 12-month period. However, if your 12-month income exceeds R1 million (or is expected to exceed), VAT registration is mandatory.

Why it is necessary to register a company

·        Company registration guarantees some legal benefits. One of them is asset protection.

·        For example, if your company suits you, you must keep your personal assets safe.

·        "If your company is legally registered, other companies will not be able to register your business in South Asia name like theirs, unless they are registered."

·        Registration also provides a special reason to give customers confidence. Registration is a signal to take the business seriously. Nobody wants to deal with shady business.

What type of tax you need to pay and what tax returns you need to submit?

There are some taxes and rewards to consider.

·        Annual Revenue: Required only for companies and CCs submitted to CIPC.

·        VAT: Using the VAT201 form, you may need a professional service provider, such as an accountant.

·        PAYE, UIF & SDL: Only if the employee is a business person using the EMP201 form;

·         Temporary Taxes: twice a year, 6 months and year-end (annual income tax);

·         28% of taxable income Income tax (28% for corporations, for taxable individuals): payable annually, one year after the end of the fiscal year;

·         Dividend: A dividend of 20% must be paid to SARS when dividends are declared. Most businesses may want to use surplus funds for their assets and growth, so they may not be in the early stages of the business.