Now is a good time to look at that side hustle you have and turn it into a professional business! Get over the thoughts that say “you can’t do it” and start doing it.
If they told you it’s hard having a business, ask yourself, how will you know if it’s hard if you have never owned a legitimate business before.
Well, at this point, you probably have a business idea or have been operational without the proper documentation. This article will give you all the steps to set you on the right track.
According to South African government and law experts at Go legal, here is a step by step on how you can start your business:
Register your business
South African law requires you to register your business with Companies and Intellectual Property Commission (CIPC).
There are different things to consider when you register, will your company be registered as the following:
Sole proprietor – is when you’re the sole owner of the business, for this you don’t need to be registered under CIPC but South African Revenue Services (SARS) for tax returns.
Partnerships – this is a business for 2 to 20 people who are agreeing in partnership with the business.
Company or Pty Ltd -This is a legal entity which is a separate entity to the owner or owners. This is a very popular option, as it protects an owner’s personal property should things go a bit south.
- Register the company with SARS – If your company is registered with CIPC, they register it on SARS, meaning you can skip that que
- Protect your intellectual property – Your company’s intellectual property includes trademarks, patents, designs and copyright. All of these are overseen by CIPC.
- Full time legal requirements for your employers – you need to register them on the following
Unemployment Insurance Fund (UIF) – This is to cover employees during long term illnesses and maternity leave.
Skills development levy (SDL) -When your payroll exceeds R500 000 annually.
Pay as you earn (PAYE) – this is if your employee earns more than R40 000 annually.
Open a business account – these are the requirements some banks need to open a business account.
- Valid ID of the business owner and anyone else that will be a signatory on the account.
- Proof of address for the business, which can be a utility bill, or in the case of a sole proprietor, the owner’s address.
- Three months of business statements are often required.
- Proof of CIPC registration.
Keep all your files safe, make sure you have digital and hard copies of your documents.
Also see:Start now and build your business brand on social media
