Why register a company?
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 the CIPC fee is R175 and our fee is an additional R300 (but this is a special 52nd Anniversary offer and will not continue indefinitely).
In favour of a company –
- If the company is not a personal services or rental company, it can probably qualify as a Small Business Corporation with huge tax benefits.
- Your customers are more likely to have more confidence in a company than a sole trader.
- Banks are more likely to extend loans to companies than to sole traders.