Generic selectors
Exact matches only
Search in title
Search in content
Search Posts
Search in pages
Search Products
Filter by Categories
B-BBEE
Blog
Company Secretarial
Featured
General Business
General Interest
Investing in Property
Marketing
Personal Growth
Personal Wealth
Tax
Trusts and Estate Planning

Shareholders and directors commonly draw money from their company without paying PAYE. Their bookkeeper will debit their loan account and these loans typically grow over time to quite significant amounts. When you owe money to your company, you should be charged interest at least at the official rate (which is 1% above the Repo Rate). This interest needs only to be a book entry – Debit Loan Account, Credit Interest Received, and the entry should ideally be done monthly. However, to simplify things, the bookkeeper could be instructed to charge interest on the year end balance at the year end…

Read More

I always figured that Search Engine Optimisation (SEO) was a waste of the R60 000 to R100 000 that the specialists wanted to charge. Surely not everyone can be on the front page of a Google search? Take a typical search. It comes up with 6 adverts and 10 articles. If you want to be one of the ads, learn how to use Google Ads. Google offers excellent free training. Alternatively, pay someone to do the job for you. If you want yours to be one of the 10 articles, then you need a brilliant SEO campaign, and no amount…

Read More

Once your company is in de-registration process at CIPC, the bank won’t help you with any facilities, your tenders won’t be accepted and life ain’t gonna be fun!

How did that happen? Quite simply, you didn’t submit your annual returns to CIPC, either because you didn’t respond to our email reminding you that the return was due, or, we are not your service provider.

Read More

Most South Africans are married either under an anti-nuptial contract (ANC) with accrual or a traditional marriage. The latter is marriage in community of property which means that there is only one estate and this is owned equally by the spouses. Under an ANC with accrual, what each spouse brings into the marriage remains theirs. There are then two separate estates which increase in value equally after marriage. However, there are certain increases which do not get shared – 1) Distributions from trusts or deceased estates, donations from third parties. 2) Damage awards from slander or defamation type of…

Read More

We form and sell shelf companies, so I guess that it is not surprising that we occasionally get a call from someone who wants to sell their dormant company to us. The answer is always “No”. Why? Because we do not know for certain that the company was always dormant. It could have some nasty skeletons in the cupboard. Sure, we can check on its tax and CIPC status, but that’s about all. Companies are often asked to sign surety against a dept of the shareholder and that is the scarey one because it would be impossible to trace.

Read More

I have always held that a Non Government Organisation (NGO) is simply an organisation which is governed by a Constitution as opposed to a Non Profit Company (NPC) which is governed by a Memorandum of Incorporation. I would state categorically, that a NPC is registered at CIPC, but that an NGO is not registered. They can both, however, register as a Non Profit Organisation (NPO) with the Department of Social Development. We own Gallagher Combined School NPC and it is registered as a NPO, so I was speaking with some experience. Then along came a client…

Read More

There are a number of reasons for buying a shelf company that is already VAT registered. 1) SARS makes it extremely difficult to register a company for VAT. Only professionals like ourselves find it relatively straightforward, but even so, a lot of paperwork has to be provided by the client. 2) If you are buying a commercial property, you simply must be registered for VAT in order to buy it as a going concern and have the transaction zero rated. Otherwise, you will have to pay the VAT and then claim it back and wait, and wait ……. for your…

Read More

There’s no doubt that load shedding is with us for the foreseeable future, so no doubt you have ensured that you have back up electricity so that you can keep your company running, but have you thought about the knock-on effects? Having recently experienced them to a small extent I have taken precautions for the future. 1) If there is no electricity, the pumps cannot refill the water reservoirs, so if the situation gets worse, expect to have water shortages as we are already experiencing in Midrand. We have installed a Jojo on the roof and piped it so that…

Read More

Company registration can take anything from about 5 days to about 5 weeks depending upon the type of company and the ability of the client to provide all of the necessary information and signatures. By far the simplest and quickest is a (Pty) Ltd. This is the one that normally takes about 5 days. If you are going this route, don’t reserve the name yourself. If you do, you’ll add a week or two to the process. Any other type of company can take 5 weeks or so, sometimes considerably longer. Here are some of the things that will slow…

Read More

For most companies the answer is no. The Companies Act of 2008 only requires a company to have their financial statements audited if its Public Interest Score is 350 or more. That would typically be a company with an annual turnover of about R300m and 50 employees. So why do we still get companies requesting audited financial statements? Let’s take a look at this. Reason 1. The company’s auditor did not want to lose the business, so failed to advise the owner(s) that not only are audited financial statements not needed, but the company doesn’t even need an auditor. Shame…

Read More

Actually, you don’t. A Non-Profit Organisation is an organisation that has been registered with the Department of Social Development as an NPO. It can take various forms from an NGO, a trust, or a Not for Profit Company (NPC). In all cases the Department requires that there shall be at least three unrelated members of the Governing Body. Also, it must have an altruistic motive. Also, your organisation can be registered with SARS as an Exempt (from tax) Institution and a Public Benefit Organisation. If anyone or company then makes a donation to your organisation, they can deduct the…

Read More

So you are starting a business and can’t decide whether it should be a company or remain a sole proprietor. It really depends upon the nature of the business, who your customers or clients will be and your expectation of success. So let’s take a look at it. One-man goods or service provider to the general public. You don’t expect to do more than earn a decent living, so you want to keep things simple and keep the costs down. Also, the general public don’t usually care whether they are dealing with a company or an individual. As far as…

Read More

If you want the company to have a name, then the minimum cost is R175. That is the CIPC fee of R50 for reserving the name and R125 for registration of a company. If you don’t register a name, you’ll end up with a company called something like K2020/001234/07. That’s if you do the entire job yourself. The alternative is to engage a professional, such as ourselves. The fee is currently R1 980 and then you know that you are tapping into a professional support service that will carry you through all of the statutory obligations applicable to companies. These…

Read More

I get lots of calls from people who want to start a business. It is difficult to respond to them because they really have no idea what it means to start, grow and run a business. So, here’s a straightforward guide. Decide what the business will sell. What great idea do I have? What am I really good at? What are people/companies badly in need of? What do I need in order to deliver the goods or services? A factory? Plant and equipment? Offices? Office furniture and equipment? Delivery vehicles? How will I make connection with my potential customers? Word…

Read More

Over the holidays, I ran a sample of the companies that we have, in the past, registered for clients, to see what was their status at CIPC. 41% of them had either been finally de-registered, were “In de-registration process”, or had outstanding CIPC returns and were therefore one step short of being in de-registration process. So there’s a very good chance that your company falls into the 41% category! The consequences are dire. If your company is in de-registration process, the banks will have nothing to do with it. They don’t get flagged automatically, so you may not find this…

Read More

Many companies can qualify as Small Business Corporations (SBCs) and save a lot of tax, but most entrepreneurs are unaware of these benefits. The requirements are, in most cases, not difficult to satisfy.  First off, the SBC must be a company or CC and all of the shareholders (or members) must be natural persons, so that rules out holding companies and trusts. Then the shareholders may only be shareholders of the SBC or of dormant companies (or CCs) each with assets of less than R5 000. If any of them hold other shares, they should sell those shares to a…

Read More

When the new Companies Act of 2008 was finally implemented a year later, we could no longer form Close Corporations. But should you convert? The main reason that CCs fell away was that owner managed companies (and a CC is owner managed) became so similar to CCs that the latter became redundant. The prinicipal changes were that an owner managed company: 1) Did not need an audit or an auditor 2) Did not need a company secretary 3) Did not need to draft formal financial statements. Contrast these with a CC which: 1) Does not need an audit, but must…

Read More

Here are some of the key questions that I ask when someone comes to me for advice about starting a new business. 1) What differentiates your company from its competitors? The point here is that if you think you can succeed just by doing what others do, then you’ve really got nothing to offer. You’ll just be another one of them. 2) How are you going to market your product or service? I think of marketing as either billboarding or search. Billboarding is putting you company out there for all to see (billboards, social media, radio and tv advertising, advertisements…

Read More

There’s a common misperception that a company has to be formed for a particular purpose. This is simply not the case. The standard short form Memorandum of Incorporation under the Companies Act of 2008 states that “The purposes and powers of the Company are not subject to any restriction, limitation or qualification”. This means that you could run a hotdog stand, rent out offices, and manufacture light bulbs, all in the same company. But would that be a wise thing to do? It depends on risk and tax. Let’s look at risk first. If you have three businesses in the same…

Read More