So you’ve taken the big step to formalise your business, or perhaps you’re on the verge of company registration with the CIPC and you’re thinking “what happens next?” Well with the registration of your company, you’ve got a few things available to you as well as a few extra requirements. From new tax laws to business banking and digitizing your business, we’ve got your next steps covered.
These steps will help you and your business take the next step towards scalability and freedom. Read on for five steps you can take after registering your company.
Register for VAT
Value-added Tax (VAT) is consumption tax placed on goods and services which is charged to end consumers. It’s beneficial to businesses not only because it shows customers and clients that you are a licenced service provider that can be trusted, but it also affords you the opportunity to apply for tenders and contracts, and allows you to claim back for tax that you pay your suppliers.
Do you need to be VAT registered? You only need to register your business for VAT if the total value of your turnover reaches R1 million over a period of 12 months. If your total turnover exceeds R50,000 but not quite R1 million you may register your business voluntarily, but you aren’t legally required to do so.
How to register for VAT
Once you are aware your business will need to register for VAT, you can either submit the VAT 101 registration form to your nearest SARS branch, or register on SARS E-filing within 21 days of exceeding the R1 million mark. Once you are registered, you are required to add the 15% VAT to your product or service invoices.
Get a business bank account
Once you’ve registered your company, you are required by SARS to have a business bank account. Luckily, you don’t have to be stuck with an expensive account fee just because you have a registered business. There are a number of entry level business bank accounts you can choose from to help you manage your cash flow, and keep your personal and business finances separate and in order.
Keep your bookkeeping up to date
Keeping your accounts in order doesn’t only help you track your financial progress, it also makes a big difference for tax season. In order to claim back for certain expenses, you need to be able to provide proof via invoices and receipts that you have tracked.
A simple cloud accounting software like Xero is the perfect solution, unless your monthly transactions are few enough that you can record them manually on Excel.
Know what tax requirements you need to follow
Having a registered business means that you have a few different tax deadlines to consider. These include:
- Annual return to the CIPC – A statutory requirement in terms of the Companies Act of South Africa. Failing to submit this return will result in deregistration of your company.
- VAT return – A reflection of the VAT that you have charged, to be submitted to SARS on a monthly or bi-monthly basis.
- Income / Provisional tax – To be submitted annually, one year after the financial year end.
Get your business online
Now for the fun part! Getting an online presence is no longer a tedious and expensive process, in fact you can get your small, or large website up and running in less than 24 hours!
How to create a website for your business:
- Register a domain – This is where you get to choose your ideal website name so that customers or clients can find you and identify you online.
- Choose website hosting – Website hosting allows you to store your website’s data safely on a server at all times as well as keep your website live and usable 24/7.
- Create a website for your business – With the likes of DIY website builders so readily available, you can create your website and get it live in less than 24 hours.
Not sure where to start? Our how-to video takes you through the website basics: