Phase One

Home » Company tax

Category Archives: Company tax

How to Register a Company in South Africa

How-to-Start-a-Small-Retail-Business

“South Africa remains one of the more poorly-performing countries with regards to entrepreneurial activity, despite the factors which are conducive to entrepreneurial ventures, including government policies and programmes aimed at stimulating entrepreneurship,” as stated by the researchers of the latest edition Global Entrepreneurship Monitor (GEM).

So just how do you register a company in South Africa and start your business.

The CIPC (companies and intellectual property commission), which has replaced the previously known CIPRO. CIPC is the body that performs company registrations in South Africa. The CIPC has put cost effective structures in place to ensure that all entrepreneurs with a vision to start a business can register a company fairly simply.Setting up the business in terms of registrations is the easy part when starting a business. Below is some information you need to know when registering a business and once you have registered a business what the requirements as a start-up are.

The company registration of a private company can cost as little as R550 allowing you to benefit from the advantages of Private company as a business owner.

Once your business is registered you can now open a business account ant any major bank in South Africa. There are other requirements to start a business in South Africa such as tax requirements. SARS registrations for your start-up will vary depending on factors such as number of employees, import and export activities of your start-up and other factors. The basic SARS Business Registration will cost R250. If other thresholds are met SARS registrations can cost an additional R250.

Please note: you will need the company registration certificate to open a business account.

Visit Phase One to save 25% on start-up packages for your business, including company registrations and all vital SARS registrations.

Advertisements

Get clued up on business tax

If you register a PTY you and your business are separate legal entities. This means you will have to submit separate annual income tax for yourself and your business. Each submission will have its own unique reference number. Below are the SARS requirements for your business

Provisional Tax
This includes income obtained from outside your employer. In the case of a sole proprietor you are requested to pay tax semi-annually. The periods for provisional tax are February till August and September till February. Thereafter tax liability is calculated and credited to your tax account. Depending on the calculation it may result in overpayment therefore SARS will refund you or a shortfall which you will need to pay into SARS by specified date.

Income Tax for businesses

Compulsory SARS tax registration and should be done within 30 days after company is registered.

Tax Turnover
The first R150 000  of taxable turnover of all businesses registered for turnover tax will be free of tax. A business is currently not allowed to register for both VAT and the turnover tax.

PAYE(Pay as you earn)
If you have staff employed PAYE tax is deducted on a monthly basis. As a business will have to register for PAYE, UIF and SDL. Independent contractors that earn more than 80% of their salary from your company will need to be taxed as employees.

VAT
If your company has a turn of over 1 million annually you will qualify for Vat. When you qualify you will need to notify SARS and register for VAT. As companies you will be able to claim VAT this however, means the company will have to also pay VAT. The VAT process has deadlines that you will need to comply with and if you fail to do so there will be penalties. Ensuring all invoices have correct company details on will result in them being accepted by SARS. If you are not registered for vat it should be stated on your invoices.

The process of SARS registration can be complex and if you do not comply with these requirements your business will pay heavy penalties. Visit Us to find out more information and costs involved.