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COMPANIES AND INTELLECTUAL PROPERTY COMMISSION (C.I.P.C.)

1. How come you should register your company?

✓ To protect your company name and the name of a Private Company is reserved and then registered on the Registrar’s database.

✓ Less Risk because a Private Company is registered as a separate entity, meaning that you take much less risk than when you are trading as a sole proprietor.

✓ More Credibility by having a Registered Private Company seems more professional and may attract bigger investors and clients.

2. What is a Private Company registration?

A typical business that announces its financial results at the conclusion of the fiscal year

3. What the objective of a Non-Profit Company registration?

A Non Profit Companies goal is to serve the general welfare rather than to generate a profit.

4. Whats the purpose of a Personal Liability Company?

Directors may be held jointly and severally accountable for any obligations that arise.

5. Why is PAYE part of a companies needs?

All employees and company directors who work more than 24 hours per month and receive a salary, wage, commission, etc. above the threshold are subject to regular tax and are required to register with SARS. The employee tax, known as PAYE, is gathered on behalf of SARS and paid on a monthly basis by the employer.

6. When should your company register for VAT?

If the total value of your company’s taxable goods or services (sales income) exceeds R1 million annually or is anticipated to do so over the following 12 months, you must register your business for Value Added Tax (VAT). When registered vendors sell goods and services, VAT is charged at a standard rate of 15%. There is a small selection of goods and services that are either exempt from VAT or subject to it at a zero rate.

7. When can you register for UIF?

If your employees work 24 or more hours per month, all employers are required to register with the Unemployment Insurance Fund (UIF).

8. What Workman Compensation does a company require?

All employers who have employees are required by law to register with COIDA.

9. How does the import and export license work?

You must apply for an import license with Customs if you intend to import restricted products into South Africa. You must apply for an export license with Customs if you wish to export specific commodities out of South Africa.

10. What does CIDB registration do for a business?

If you have a registered business and want to submit an application for contracts or tenders in this sector, you need register with the Construction and Industrial Development Board.

11. What does Turnover Tax mean for my business?

A streamlined mechanism called turnover tax is designed to make it simpler for microbusinesses to comply with their tax requirements. For microbusinesses with a qualified annual turnover of R 1 million or less, the turnover tax system replaces Income Tax, VAT, Provisional Tax, Capital Gains Tax, and Dividends Tax. Nonetheless, a small business that is registered for turnover tax may choose to continue using the VAT system (from 1 March 2012). Applying a tax rate to the taxable turnover of a microbusiness results in the calculation of turnover tax.

Microbusinesses with a revenue of R 1 million or less each year. The subsequent taxpayers may be eligible:
✓ Person(s) (sole proprietors)
✓ Collaborations
✓ Dissolve companies
✓ Businesses
✓Cooperativists