You have now decided to go ahead with starting your business and have a business plan. Now its time for some not so exciting admin.
Step 1 is to create and register your company:
If you are a sole proprietor (sole trader) which means that you simply trade in your own name and not as a company or cc, then simply skip this step and move on to step 2. If you are intending to trade as a private company (Pty Ltd) then you will need to be audited or reviewed each year. The documentation required in setting up a private company can be found at www.cipc.co.za and can be done by your self or you can ask an accountant to help.
Step 2 is to open a bank account:
If you are a sole proprietor you can trade with your existing personal bank account. However if you have a company, you will need to open a bank account in the name of the company. Simply take your company registration documents, the ID books of all directors and proof of business address and home addresses of all owners and directors to your bank. They should be able to then open an account for you. If there is more than one owner, you need to give careful consideration as to who will have access to your banking details and who will be able to make payments out of your account.
Step 3 is to start trading:
With a bank account you can now make and receive payments. With your company documents you can now trade as a corporate entity. Welcome to the business world and an exciting journey.
If you want a simple way to do this, then click here.
It is beyond the scope of this page, but in many cases you will also have to register for VAT, UIF, COID, PAYE, SDL and certain tax categories depending on the size of the company and whether there are any employees. More information can be found on our legislation pages.
Certain types of businesses will require a license to operate. Examples include food, liquor, gambling and erotic businesses. For more information on this contact your local municipality.
Last update: 2015
Helping you start and build your small business empire
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