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All south African companies whether it be a CC, Private or Public company are required to submit annual returns with the CIPC. Annual returns will vary dependent on the turnover of the business as well as whether it is submitted within the 30 days of incorporation each year.
Here is some answers to questions you may have about annual returns submission
When do you submit these returns?
Within 30 Days of the companies incorporation.
What if I have never submitted annual returns?
If the annual returns are not submitted within 30 days of the companies incorporation date penalties will be charged dependent on number of years the fees are outstanding as well as the annual return fee x the number of outstanding years.
Why should I pay these returns?
The annual returns system is in place to ensure CIPC has current information of the business as well as to know whether it is still operational.
If the company is no longer active?
If a company is no longer active one should approach the CIPC in order for the company to be deregistered in stead of just forgetting about it or ignoring the company.
Visits Phase One Business Registration in order to find out whether your returns are due and let us help you submit them before penalties arise.
The process of company registration is fairly simple in South Africa and if you know all the required details it will go down without a hitch and next thing you know you have registered a private company.
Here are seven steps to consider
1. Decide on a name
The company name will end in PTY (Ltd). Be sure your business name is distinctive and not ambiguous. Some thought should be given to the business as it will contribute largely to the perceptions of your brand. Ensure that you have more than one option in case one is already taken.
2. Shareholders of a private company
Shareholders own a percentage of the business the percentages should equal 100%.
3. Appointing a director
The director need not be a shareholder of the private company but is in charge of business management and operations. There can be multiple directors of a private company. Directors can easily be removed and added to the private company.
4. Member details
Ensure you have personal details of the directors and shareholders, such as:
The above information should be as it appears on ID documents. If a director or shareholder is not a South African citizen a special letter of consent needs to be signed.
5. Company details
-General product/service the business will offer
6. Appointing an auditor
Approach a local accounting consultant to find out whether your private companies public interest score qualifies your financial reports to be audited. Most small private company registrations do not qualify and therefore their financial statements can be compiled internally and need not be audited.
7. Ready to go ahead with your company registration, visit Phase One today.
Starting a business can be relatively easy, whether or not the business will succeed is another story. The reality of your businesses success in the long term is only 10% of stat ups are operational in the first three years and only 10% of those small business start ups make it to ten years.
“Always under promise and over deliver”
Is an important business principle that should always be kept in mind. With all modern technologies in South Africa that is available to small businesses, SME’s find that 26% of their sales still come from word of mouth. People’s impression of a business is crucial to attaining potential clients. Having the correct systems in place to ensure your business is not only running effectively but efficiently as well is crucial to keeping your promises and commitments to clients.
Your business is made up of many core components that need to work together correctly to create the business as a whole. These core components are your business functions. Every company will have multiple business functions such as sales, finance, human resources, operations, marketing and depending on the size of your small business you might be doing them all.
The simplest way to ensure your businesses units are functioning as a whole is to break each core function up into its simplest form, understand the objectives and responsibilities of each function. Writing these objectives into manageable tasks will ensure they can be monitored and controlled.
All the functions in a business are linked and influence the way in which another function can operate. It is unlikely that one person will have expert knowledge in all functions. As an entrepreneur you should ensure the people you hire in certain functions have sufficient knowledge in their area of expertise and manage the daily, weekly and monthly tasks that will need to be completed. Thus giving you time to focus on your overall business and not individual tasks.
Tip: Students are great employees for all small businesses, they are eager for experience in their industry.
You may not need someone full time which fits in with their flexible hours and you will be able to afford their salary. Just ensure the student has sufficient skills for their function. This is not your chance to step back but rather play and active managerial role that an entrepreneur was born to play, plus you will free up some time.
How To start a business: To register a Private company, simple visit Phase One and all the information of costs, the process involved, what is needed to register a company and additional information will be available to you.
Any topics you feel you need clarity on or would just like to boost your knowledge let us know and Phase One will ensure your queries are answered.