Congratulations on taking the significant step of formalising your business! Whether you’ve just completed your company registration with the CIPC or are on the brink of doing so, you’re likely wondering, “What comes next?” Well, with the registration of your company, several opportunities and responsibilities await. From navigating new tax laws to establishing business banking and digitising your operations, we’ve got you covered with these essential steps to propel your business forward.
1. Register for VAT
Value-added tax (VAT) is a crucial component of doing business, serving as a consumption tax levied on goods and services sold to end consumers. Registering for VAT not only demonstrates to your customers and clients that you’re a licensed and trustworthy service provider but also opens doors to tender opportunities and allows you to reclaim taxes paid to suppliers.
Determining if your business needs to be VAT registered depends on your turnover. If your total turnover exceeds R1 million over a 12-month period, VAT registration is mandatory. However, voluntary registration is an option if your turnover exceeds R50,000 but hasn’t reached the R1 million threshold.
To register for VAT, you can either submit the VAT 101 registration form to your nearest SARS branch or opt for online registration through SARS E-filing within 21 days of surpassing the R1 million turnover mark. Once registered, you must add a 15% VAT charge to your product or service invoices.
2. Secure a Business Bank Account
Following your company registration, SARS mandates that you have a dedicated business bank account. Fortunately, you aren’t confined to costly account fees simply because you’re a registered business owner. Numerous entry-level business bank accounts are available in South Africa, enabling you to effectively manage cash flow while maintaining separation between personal and business finances.
3. Maintain Up-to-Date Bookkeeping
Keeping meticulous records isn’t just a good business practice; it’s essential for financial tracking and tax compliance. Proper documentation, including invoices and receipts, is vital for claiming back certain expenses. Utilising user-friendly cloud accounting software like Xero streamlines the process, though manual record-keeping via Excel is feasible for businesses with minimal monthly transactions.
4. Understand Your Tax Obligations
Registering your business entails adhering to various tax deadlines, including:
- Annual return to the CIPC: A statutory requirement under the Companies Act of South Africa. Failure to submit this return can lead to company deregistration.
- VAT return: Submission to SARS on a monthly or bi-monthly basis, reflecting charged VAT.
- Income/Provisional tax: Annual submission, due one year after the financial year-end.
5. Establish an Online Presence
Nowadays, establishing an online presence is pivotal for business success and need not be arduous or costly. Within a day, you can have a website up and running, catering to businesses of all sizes.
To get started:
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Register a domain: Choose an ideal website name to enhance online visibility and brand recognition.
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Web hosting: Secure reliable hosting services to ensure your website remains accessible and functional round the clock.
Ready to take your business to the next level? With our comprehensive company registration service, you’ll receive official company registration with CIPC, domain registration, web hosting, professional email, and a website builder for six months with a convenient one-off payment of R849. Don’t miss out on this opportunity to kickstart your business journey with ease and efficiency.