Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Search Products
Filter by Categories
Company Secretarial
General Business
General Interest
Investing in Property
Personal Growth
Personal Wealth
Trusts and Estate Planning

There are massive benefits in having your company or CC classified as a Small Business Corporation – most particularly a potential tax saving of approximately R90,000 every year.

Here is how you qualify –

1) All members (shareholders) must be natural persons (i.e. no trusts or other companies).

2) No members may hold shares in any other private companies except dormant companies with less than R5 000 assets.

3) Turnover of the company and its subsidiaries must not exceed R20m.

4) No more than 20% of the turnover and capital gains may consist of investment income (such as property rental) and income from rendering a personal service.

5) Personal service includes professional services such as law practice, accountancy, auditing, commercial art etc.

6) The company is not a personal service company if it employs at least three independant full-time employees in its core operations.

7) The company may not be a labour broker.

Tip If you are the member of one SBC, your spouse can be the member of another, your adult child another and any remaining companies or CCs can be owned by a family trust. That would be three SBCs in one family!

Trap A sole trader or a partnership cannot be a SBC, so in order to qualify they would have to incorporate. The major downside to doing this is that they would then have to account for VAT on the accrual basis rather than the cash basis and this will affect their cash flow. But R90 000 tax also affects their cash flow!


Assets used in the process of manufacture can be written off in the year of purchase.

Other depreciable assets may be written of 50% in first year, 30% in second year and 20% in third year.

Up to about R90 000 each year saved on Income Tax.

Should you wish to make an appointment, please feel free to visit Derek’s diary and book a time that suits you.


Need a shelf company or CC, a tax clearance, VAT registration or B-BBEE certificate? We offer a wide range of such services.


XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Looking for even more informative content? Check out the books I have written which have proved to be very popular.

Need help with your Trust or Business?

Contact us today or set up a free meeting with our CEO, Derek Springett. We have been offering expert advice and business services since 1971. You can also view see our full list of services.

Do you want to leave your cart?

Your cart is awaiting your next purchase, so please proceed to the Home page and continue shopping. If you are leaving your cart because of problems, why not give us a call on our 24 hr numbers 063 866 8928 or 011 805 0030 (subject to load shedding)? If all else fails, call Derek, our CEO on 082 552 9696. We’ll do what we can to help