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It may seem a bit crazy. Here are the numbers: New company registration fee incl VAT R610 Of that SARS gets VAT of R80. CIPC gets R50 to reserve the name. CIPC gets R125 to register the company. That leaves R355 for us. And for that we provide: Free bookkeeping for the first 6 full months. Normal cost excl. VAT R2 810 B-BBEE Affidavit/Certificate. Normal cost excl. VAT R790 Derek’s book “16 Steps to Business”. Normal cost excl. VAT R410 (R470 incl VAT) Unlimited Zoom meetings with Derek. Priceless! Total value R4 010 excl. VAT and excl. Derek’s time. Are…

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People used to buy shelf companies for a number of reasons: They needed a company urgently and couldn’t wait while CIPC went through the tedious registration process. It now takes about a day to register a new company at CIPC. They wanted to back-date the sale of the company (for R100) to their trust followed by backdated donations to the company. It is now compulsory to submit a Beneficial Ownership Return to CIPC and also in the company’s Annual Tax Return to SARS. This discloses who the shareholders are, so the change of shareholding can no longer be backdated. They…

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It is very important to manage any loan account that you have with your company, because this can save you paying unnecessary tax. Loans to a company by you These can arise from: Money you spent on behalf of the company before it was registered. This is something that is frequently neglected. Your assets, such as computers, printers etc. that the company now uses. You should sell them to the company and credit your loan account with the sale price. Money you lent to the company when it was short of cash. Your after tax salary, for which the company…

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Let’s say that one company has two businesses. There are two shareholders and each runs one of those businesses. The reason they chose this structure is that although different, each business generates leads for the other, so there is good synergy. Is there any benefit in keeping two sets of books, one for each company? Not in my view. The reason is that there are bound to be shared costs and if you have separate books, then you have to split those costs. This is a trap that is quite common. The difficulty is that you have to decide on…

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Evidently about mid 2022 SARS posted a letter onto it’s website advising anybody that was lucky enough to stumble on it that it had set up a new platform for import and export licenses. It advised traders that they must migrate to the new platform (they called it “onboarding”) Of course, nobody saw the letter. Now we just got bombarded by SARS with SMSs advising us that our (clients’) licenses are about to be suspended, because they did not onboard to RLA. Thank you SARS. Brilliant communication. It took us the usual forever to navigate our way through the process,…

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I have yet to form a trust of which at least one of the trustees is also  beneficiary, so the answer is an unequivocal “Yes”. “But hang on”, you say, “I snipped this from the CIPC website when I was trying (yes, I’ve also tried) to submit my trust’s Beneficial Ownership return” – So now CIPC is changing the law relating to trusts. Absolute nonsense! But said with such authority, one wonders who in their right mind at CIPC could come up with that one.

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Sure, we only charge R475 to form a company, and R175 of that goes to CIPC in fees. Maybe that’s why so many people don’t think twice about registering a company. What they don’t consider is that if they do not use the company, then these are the costs – Two nil provisional tax returns each year at about R650 each Nil Annual Tax Return at about R700 Or R200 every month per return SARS Administrative Penalty for non-submission CIPC Annual return about R1 000 Once off declaration of beneficial owners about R1 000 And then the whammy – Cost…

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My regular readers will have noticed that I’ve made a couple of mistakes lately. Firstly regarding trusts having to register for tax (a whopper), and secondly, by cutting and pasting a lease and missing out the important cancellation clause. This brings me to a fundamental in management that few people adopt. I make it quite clear to my staff that they are allowed to make mistakes. I’m not talking here about sloppy work, I’m talking about genuine mistakes arising from lack of knowledge or experience. If they do make a mistake, they know that they can come…

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In my discussions about Trusts, I frequently have a go at attorneys who are self-confessed cut and paste experts. I point out that the more you cut and paste, the more likely you are to produce garbage. In fact, I dedicated a whole chapter on this in my book “16 Steps to Wealth”. But this week, I came across another cut and paste idiot. Me!! When we agreed to lease our residence in Pezula, Knysna, it was from the owners, who would move out so that we could move in. I offered to draw up the lease and they agreed.

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So many people register a company with us and then do nothing with it. Is that a problem? Most definitely. SARS is imposing a penalty of R200 each month for every Income Tax return that is outstanding by companies. They appear to be particularly targeting dormant companies. To avoid this, you will either have to submit nil returns yourself or pay someone else to do them for you. CIPC imposes a much smaller penalty of R50 for late submission, but they will de-register your company after a few years of non-submission. You can submit the returns yourself or pay someone…

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I referred to the new anti-money laundering act in an earlier post regarding trusts. The same Act amends the Companies Act to require the reporting of beneficial ownership (essentially the shareholders) of all companies to CIPC. Interestingly, the Master of the High Court has already published their requirements on their portal CIPC have also added the facility to their website, but at my last try it didn’t work. One side effect of this is that those of you who are employees who are not allowed by their employer to run a business will now no longer be…

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If you bought from us, you probably only paid R475 to register your company (R300 for us and R175 for CIPC). Not a big deal. But then the business doesn’t get off the ground and you want the company de-registered. Now what? Now we have a very different story. This is the sequence (and our current fees) All tax returns must be filed (presumably Nils) R2 020 for each tax year. All CIPC returns must be filed R1 120 for each 12 months following registration. De-registration at CIPC R4 500 De-registration at SARS R3 500 That’s a whopping 11 140…

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For over 20 years, we have been hearing that Government is working hard to make it easier to do business in South Africa. Huh? It would be ridiculously simple if just one reasonably intelligent, well informed, person spent just one hour thinking about it. He or she would come up with the following for any company whose turnover is less than R20m. Eliminate annual CIPC returns. They are a complete waste of time and money and achieve nothing. Saving about R1 000. Eliminate provisional tax returns. Collect all taxes from the Annual tax returns. Saving about R1 000 this would…

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If you are starting a business you have to consider whether to continue as a sole trader or to register a company. In favour of a sole trader – You already have to submit a personal tax return. If you remain as a sole trader, then you still only submit your own return, but if you register a company, then you have to submit one for the company as well. A company has to submit two annual returns to CIPC and pay their small fee. If you don’t do it yourself you will need to pay for the registration. Currently…

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So many people plan to form a company without knowing what the differences are. So, here we go – Shareholders are the owners of the company. They have no say in how it is run and the only decision they make is who they appoint as the directors. Directors are appointed by the shareholders to run the company for the benefit of the shareholders. There are two types of director – Executive directors are employees of the company and earn salaries Non-executive directors are not employees of the company. They sit on the Board and receive directors’ fees. They take part…

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When the new Companies Act came into effect back in 2010, it ceased to be possible to form a CC, but existing CCs were, and still are, allowed to remain in that form. What many people don’t realise is that a CC is not the best form of business entity. It has been surpassed by the (Pty) Ltd company. The main differences are – nobody knows who are the shareholders (owners) of a company. This information is not registered with CIPC, only on the share register at the registered office of the company. the members (owners) of a CC are…

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The cheapest way is to form the company yourself as the only cost is the R175 fees payable to CIPC. The problem with that is that you still have to produce the share certificates, share register, obtain a tax clearance if needed and a B-BBEE affidavit if needed. It’s our 50th Anniversary so, for fun, we’ve dropped our fee to R475 which includes the CIPC fee, so we get R300. And you get the share certificates, share register, a tax clearance and a B-BBEE affidavit. Other service providers are currently charging about R2 000, which is our normal fee. But…

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Despite my having written an article stating that you cannot change an NPO into a normal company, somebody booked a meeting to discuss how she could do exactly that. She was a “no show”, so I never found out what it was all about. But it almost certainly meant that she did not understand the difference between the two types of company. There’s just one difference – an NPC cannot distribute dividends to its shareholders either in cash or in kind. Now, how many private companies declare dividends? I’ve known about 10 in all of my 36 years with…

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I have had some informative experiences recently regarding the price sensitivity of our products. It’s our 50th anniversary, so, I used that as an excuse to drop our price for company registrations to R175. Just enough to cover the CIPC fees. The reason that I did this was a realisation that we make our money from servicing companies with registrations, bookkeeping, payroll, returns, B-BEE affidavits and a host of other services. So why not just give them away and that way we increase our potential client base for our other services. We were inundated. I had to stop the special…

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Have you noticed that SARS claim to be only 25 years old? It’s on their website when you log in. And here’s Harbour and Associates celebrating 50 years – And still many people don’t know that we are accountants! So let’s put the record straight. Here’s what we do – Financial statements with or without review Formation of trusts Formation of companies Personal and company tax Bookkeeping Payroll VAT B-BBEE affidavits Company secretarial Registrations Wills Business plans But, most of all, what we do is stand by you. I’ve been meeting people at no charge for something like 10…

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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