Your new business has gone through many processes. First you dreamed about it, then you brainstormed and put together a business plan. Now you’re going into action and registering your business. This first step can be daunting, and it’s a lengthy process. Here’s a quick reference guide to help you through it.
1. Business registration
Your first stop will be at the offices of CIPC (Companies and Intellectual Property Registration Office). This entity is responsible to register your business. You can do submissions at the offices in Pretoria, but luckily CIPC has got an online service as well.
You can register a profile on their website and file papers online. Its processes are user friendly and the site clearly states which documents you need to submit. Payments can be made to their account and after each transaction an amount will be deducted. There’s no need to stand in queues anymore. Your business can be registered in no time.
2. SARS registration
Register your business with SARS to obtain an income tax number. This process is done by filling in an IT77 form. You can do this online or at your local SARS office. This process should be initiated within 60 days of company registration.
3. VAT registration
If your projections show you’ll have a turnover of more than R 1 000 000, you need to include this step in your statutory process. Simply fill in the VAT101 form at your local SARS office. Closed corporations have more paperwork to submit. Check this detail with SARS before getting in line so you don’t waste time in queues.
4. Employee tax
Your business plan should include detail about your potential employee list and how much their salaries will be. If you plan on employing people right away you need to register for PAYE (Pay as you earn) tax. SDL (Skills Development Levy) is also necessary if your payroll will be above R 500 000 per month. These aspects and UIF can all be handled by completing and EMP101 form from SARS.
5. Register with the Department of Labour
The country’s laws require companies to register with the department of labour. This step in the process is necessary to protect you and your employees under COIDA (Compensation for Occupational Injuries and Diseases Act). If injuries occur as part of business responsibilities your employees can make claims to cover costs. Legislation protects business owners from certain liabilities.