Getting your business off the ground is an exhilarating experience. Entrepreneurs who follow through and start their businesses overcome many challenges; funding, time management and marketing. Starting a business requires a lot of discipline and long hours.
There are, however, a few things that may fall by the wayside. We have the four most commonly asked questions by new business owners and people who are considering starting their own business.
How do you register your business in South Africa?
In South Africa, your company needs to be registered with the Companies and Intellectual Property Commission (better known as CIPC). 1-grid has streamlined online Company Registration, and we do all the legwork for you:
Follow these 5-steps to start the process:
- Find a suitable company name and domain to reserve
- Sign up or login as a 1-grid customer
- Add company address and financial details
- List 1 or more company directors
- Review your checkout and leave the rest to us
Documents required for new company registration
- Proof of address no older than three months
- Latest 3-month bank statement
- Proof of Identification
- Directors proof of identification
- SARS document including income tax number
How do I get a tax number for my business?
Filing separate taxes for your business has many benefits; one being that your finances and the business finances get treated as separate entities. Plus, filing business taxes avoids penalties, builds trust with suppliers and establishes business credit.
This link gives you a full view of how you can obtain a business tax number and the forms you need to complete:
Do I have to apply for licensing and permits?
Certain industries need you to obtain a permit or license before you can operate. Some regulations govern industries, and your business must comply.
According to SME South Africa, the following businesses require permits:
- Health clinics, spas, saunas, and public baths
- Massage parlours, laser and ultraviolet treatment centres
- Escort agencies
- Adult shops
- Pool rooms
- Any business with three or more vending or slot machines
- Places that serve food, provide take-aways or transport meals
Why must I open a business bank account?
Having a separate business bank account makes filing business taxes easier and also allows you to fulfil key business functions like running a point of sale system as well as potentially obtaining a business bank loan. All the major commercial banks in South Africa offer and encourage entrepreneurs to open business bank accounts.
What do I need to open a business bank account?
- Proof of CIPC registration of your
- Valid ID documents for the business owner and any other signatories on the account
- Proof of address for either the owner (sole proprietors) or the business. Usually, utility bills or similar documents are sufficient
- Banking history of your business – three months of statements are often required