Now that we know that many successful businesses have been launched during economically challenging times, and there is a plethora of businesses that are thriving during the pandemic, why not begin your new business now? Once you have done your market research and know what product or services you want to offer then write your business plan which is the foundation of your business. To make things easier for you we have a guide that will inform you of the steps you need to take to open and run your new company.
Step 1: Business Name
Decide on a name for your business. Check whether the name is available and if the domain is also available before applying at CIPC for the name.
Step 2: Business Structure
Decide on the type of business structure. Do you prefer to open a sole proprietorship, partnership, proprietary limited company Pty Ltd (private company), public company or a franchise? There are many legal and tax implications and advantages and disadvantages of each type of business structure. If you are not certain about which of these business structures would best suit your need, we are available to advise and assist you.
Step 3: Register your business
Register your company as a legal entity at the CIPC or we can do the heavy lifting for you. We have many affordable packages to choose from. Please see our home page.
Step 4: Meet all statutory and legal requirements
Register your business with all the mandatory legal and statutory bodies for provisional tax (sole proprietary or partnership), PAYE, UIF, COIDA, income tax, skills development levy, RSC levies etc.
Register with SARS and obtain your Income Tax Reference Number
It is mandatory to register your business for PAYE (Pay As You Earn) within 21 days of becoming an employer, unless none of the employees are liable for normal tax. Furthermore, if your payroll exceeds R500 000 per month, then you will be required to register for Skills Development Levy (SDL).
If your turnover would be over R1 million per annum you need to register as a VAT vendor. If you employ one or more full time staff, you will be required to register with the Department of Labour for COIDA- Compensation for Occupational Injuries and Diseases Act.
All employers are required to register their employees with the Unemployment Insurance Fund (UIF). Apply for permits or licenses if required.
Step 5: Bank account
Open your business bank account using your company registration documents. You will require a copy of your ID and proof of business premises. We can also assist you with this process, making it more efficient.
Next steps will appear in the blog to follow, look forward to marketing, branding and promoting your business…
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