Buying a Shelf company on the internet? Here are some of the issues that might arise when you decide to buy a shelf company online. The shelf company’s Registered Office Address will be that of the company that formed it, so if you don’t want to keep that address you must ask them to change it, otherwise you will be charged for using their address You can’t open a bank account until you are registered as the director(s), unless we do it for you. Your appointment as a director is immediate, so you can act for the company, however, some…
Author: zombie
Think carefully before you buy a shelf company where you undertake to do the change of directors etc. yourself. There’s a story that goes back to the early days of computers. You know, when the giant stood quietly humming in the middle of a special dust free temperature controlled room. The computer packed up and the boss called in a specialist. The engineer (they weren’t called IT guys in those days) walked slowly around the computer twice in one direction and then once in the other. He paused in thought and then gave the beast a vicious kick on one…
If you want to try doing the job yourself, here’s what you have to do Register with CIPC. Here’s where you find out how. Enter the change of director details. Here’s where you find out how. When you receive the CoR39 by email from CIPC, have all the directors sign it and email it back to CIPC with all supporting documents. This is also detailed in the above link. Now for what they don’t tell you – The Certified copy of any ID has to be stamped “FOR CIPC PURPOSES ONLY”. They recently added a requirement that they must also…
Why would someone want to buy a shelf company instead of forming a new one? Obviously, it is a question of urgency. The urgency can arise for a number of reasons. Typically – You need to submit a tender or a quotation and the customer insists on dealing with a company rather than an individual You want to buy a property in a company owned by a trust and the offer to purchase must be submitted quickly or you’ll lose the deal You want to buy a business as a going concern and have the deal zero rated for VAT…
If you have investment properties, then when the second of you and your spouse dies, up to 38% of their value will go in tax and that is payable in cash. The answer is to hold them in a trust. The tax is made up of Estate Duty (20%) and CGT (18%). But when you die, the trust does not die and those dreaded taxes do not kick in. Should you wish to make an appointment, please feel free to visit Derek’s diary and book a time that suits you.
Some time back I wrote a post called “Why your website doesn’t work”. But what if it does work? Ours has performed miracles for us since we had Jain’s team at Refract give it a complete new look and feel in 2014. But now we’ve decided to start all over again (still with Jain). Why? Simply because we want to do more business and nothing will change unless we change something! Jain’s team have cut our Adwords spend from R25 000 per month to less than R5 000 with more clicks than ever before. Our sales of shelf companies and…
This is what I wrote a few days back, I’ve unpublished it because there’s even more! They now say that an Exempted Micro-Enterprise is not a Measured Entity and that therefore it was not allowed to adopt the new Codes ahead of 1 May 2015 and that therefore any certificates issued to an EME under the new Codes and prior to that date are invalid. Now this is what the Codes say 3.2 The basis for measuring the B-BBEE compliance of an Entity in terms of paragraph 3.1 is: 3.2.1 Paragraph 4, in the case of an Exempted Micro-Enterprise; 3.2.2…
Quick pick – Form a new company Shelf company VAT registered Non-profit company (NPC) For a professional practice (Inc) Public company (Ltd) Or read more – Ordinary (Pty) Ltd Companies If you can wait about two weeks, let us form a new company for you with the name of your choice. If you need a company urgently, then buy a shelf company and we will change the name at no cost (you only have to pay the R300 charged by CIPC). You will be able to trade within a day or two. Special Companies If you have special requirements, you…
Your trust does not protect you, but it can protect your assets. Let’s take a look at what you own. Probably a house, two motor cars, household goods and furniture and then, if you are building your wealth for eventual retirement, you will have, or plan to have, some investments like listed shares or property. You will also own shares in your business. When you are declared bankrupt you stand to lose everything you own, but not what is owned by the trust as it is a different “person” entirely. So, in principle, your trust should own everything that you…
If you bequeath money to a minor (under 18 years of age) in your will, you would, if you were still alive, be horrified to find that your bequest cannot be fulfilled. The cash must be deposited into the Guardian’s Fund which is administered by the Master of the High Court. Interest is earned on the money and school fees etc may be paid out of the fund. However, the process, like everything else administered by the Master’s office, is cumbersome and burdensome so is best avoided. Avoidance is a simple matter. All you need to do is either bequeath…
It’s not just a question of trusting your trust. It is really how much you can trust your independent professional trustee to get things right and keep them right. Ever since the Badenhorst vs. Badenhorst case it has been considered essential to have an independent professional (accountant or attorney) on board as a trustee of a discretionary trust whose object (or at least one of them) is to protect the trust assets against external creditors. But this professional trustee should not be selected just for window dressing (i.e. to give the appearance that the trustees are truly independent of the…
Two diametrically opposed interpretations My darling wife had always believed that this meant that if you kept jumping from one thing to another you would never gather value, whereas I had always understood it to mean that if you stood still you would be overgrown with moss and stagnate. So I googled it and she was right. But then there came up another interpretation which was consistent with mine. So which is right? Well, you don’t have to be a rocket scientist to answer that one. It all depends on the meaning of the word “moss”. If it means wealth,…
How CGT taxes inflation Did it ever occur to you that CGT is not a capital gains tax? It is a tax on inflation! Let’s say that in 2003 you bought a property for R1m. You sold it in 2015 for R2m and average inflation over that time was 6%. Those of you who have read my post on the Rule of 72 will be able to calculate that you made zero profit because over the 12 years, the value of money halved from R2m to an effective (buying power) R1m which is what you bought the property for in…
Don’t be a slave to the 80/20 rule Also known as the Pereto principle. It was Vilfredo Pareto who, in 1906, observed that about 80% of the land in Italy was owned by about 20% of the population. He also noted that about 20% of the pea pods in his garden contained about 80% of the peas! (Wikipedia) So we all know that 80% of our business comes from 20% of our customers and 80% of our debtors is owed by 20% of them as well. And so it goes on. Here are some more from Richard Koch “ Living…
Why two databases is double trouble Way back around the mid seventies, I ventured off to the Computer Fair to buy my first DOS computer (up until then I’d been programming in Basic on an HP85). I got into conversation with an attractive young lady on one of the stands. She obviously knew her stuff and I was trying to decide which of their computers I should buy. She asked me “How big is your database?” “Huh?” I think I might have blushed. I’d never heard of a database! Well, since then I’ve had lots of them and I bet…
What is good and what is bad about B-BBEE I guess the good bit is that under the new codes, any enterprise that’s got a turnover of less than R10m is automatically Level 4 and any enterprise that is at least 51% black owned with a turnover of less than R50m is automatically Level 2. The same company is Level 1 if 100% black owned. So that takes care of about 95% of all South African enterprises (my estimate). Then why on earth do we need B-BBEE Codes at all? Just tell us what your black ownership is and we’ll…
5 Essentials you need to get right before starting a business You need to have a product The ability and resources to produce what you are selling is obviously essential. Don’t go out there and win a tender then start figuring out how you are going to fulfill it. That’s for tenderpreneurs and they aren’t building a business, they’re just feeding from the trough. Subcontracting can work and certainly subcontracting part of your offering can make a lot of sense, but you do need a core that is entirely yours. You need to have a market. When I lived in…
You should have read the post “Starting your own business”. It deals with why you want to start a business and the things that often go wrong, but it does not deal with the mechanics. So here goes – 1) You would normally do better to start with a company rather than as a sole trader. We can sell you a company off the shelf or we can form a new company for you. Your best bet is to form a new company so that you can have the name that you want from the word go instead of having…
Why do we have so many beggars in Johannesburg? Why do we have so many street vendors selling counterfeit goods at our robots? Now if you were thinking of going into the begging business you would surely start off with a belief – “People give to beggars”. If they didn’t you wouldn’t go into the business would you? Same with counterfeit goods – “People buy cheap versions fo the real thing”. If they didn’t you wouldn’t go into the business would you? How about stolen goods? – “There’s always a market for stolen goods”. If there wasn’t, people wouldn’t steal…
One good reason to hold your investments in a trust is to protect them from creditors in the event of bankruptcy. Oh, of course, you’ll never be bankrupt will you? Let me ask you something. What is the difference between the type of person who will become a multi millionaire and one who will be a bankrupt. Answer – none! Or quite simply, if you don’t want to risk bankruptcy, go get a 40 hour a week job! So yes, you are at risk. If you’re not, then you’re probably not going to become the sterling millionaire that you need…