The mechanics of starting a business
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 to pay us to change the name of a shelf company.
2) But if you are in a hurry, you can buy a shelf company and then be “Trading as ……”. Do not put (Pty) Ltd after your trading name.
3) Which is better, a CC or a (Pty) Ltd? There is very little difference and in any event we can’t form CCs since the new Companies Act came into being. Actually, a company is a better bet than a CC as it costs less to maintain.
4) Now the company has to be registered as a taxpayer at SARS. Our fee includes this.
5) The company will need a bank account. We can arrange this very quickly at Standard Bank, Randburg
6) Other registrations which may be required are (a) as an employer at SARS, UIF and WCC (b) as a VAT vendor (c) with CIDB if it is a construction company (d) as a Public Benefit Organisation at SARS (charities, churches etc.) (e) as an Exempt intitution at SARS (f) as a non-profit organisation at the Department of Social Welfare.
(7) If the shares are foreign owned, the certificates need to be stamped “Non-Resident”.
(8) The company may require an Import/Export licence.
(9) You may need a B-BBEE certificate and as it is the first year of trading it is automatically an Exempted Micro Enterprise.
But most of all, you need to come and see me for a no charge meeting. I’ve been in business all of my life, first as an engineer with my own factory and then as a Chartered Accountant with my own practice. Here’s my diary – book a time that suits you.