Fill in your details below and one of our friendly consultants will call you back as soon as possible.
  • This field is for validation purposes and should be left unchanged.

Follow us on Twitter

  • RT  @TyronneNel : #SME Advice - It might be late but just remember success doesn’t keep office hours! 2 hours ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, employ the most skilled employees you can afford! Poorly skilled staff are worse for your… 1 day ago
  • Is your business idea viable⁉️ Is there anything you can do to improve my idea’s chances of success⁉️ ✅✅YES! Find… https://t.co/6cxu1bBdJq 2 days ago
  • Owe money to SARS for inaccurate or non-submissions? SARS has become more "friendly" that will help you come right.… https://t.co/EbTCjUXkor 4 days ago
  • Always at the forefront #innovation https://t.co/OXuRCgl5bB 5 days ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, the quickest way for you to become a big business, is to be a BETTER business! Do your ad… 6 days ago
  • RT  @capetownoffice : Tune in to Mix 93.8 FM at 13h30 today & give a huge shout out to Roland Albertson who'll be taking over! #coworkers #… 7 days ago
  • RT  @ProcessMechanic : Ditch the paperwork & start using an online platform to plan and manage the growth of your business. Sessions cover #… 7 days ago
  • RT  @capetownoffice : The latest The Office ! https://t.co/sq8r8ZPb7A Thanks to  @TyronneNel   @carlo_petersen   @harry_kane1  #coworking #capetown 7 days ago
  • Government needs to create an enabling environment for entrepreneurs by developing policies that GROW businesses, i… https://t.co/HPulS5CXJg 1 week ago
  • RT  @BonganiNtuli : Three weeks from opening my spot in Bryanston, kinda scary cos Im not a social person, but ill get it done nonetheless. 😊… 1 week ago
  • RT  @innovsummit : Monday is the last day to catch your ticket to THE leading innovation & entrepreneurial ecosystem platform! Will we see y… 1 week ago
  • RT  @capetownoffice : My fellow South Africans... I feel we need more discussion on this new reality. Holy shit. #PetrolPrice #PetrolPriceHik… 1 week ago
  • RT  @ProcessMechanic : If you're going to pitch or present & your audience is given the opportunity to ask questions, make sure you listen to… 1 week ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, make time for family and friends, don’t forget, they’re walking this road with you 😉 2 weeks ago
  • RT  @Workshop17za : Workshop17 Firestation in Rosebank will welcome more than 300 members to our space opening in November! Reserve your offi… 2 weeks ago
  • RT  @ProcessMechanic : If you're about to launch an app/web service, make sure you have a strategy to grow an audience that you will direct t… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, the one characteristic that separates successful from unsuccessful businesses is the unrel… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - The Customer is Not always right.... but it’s probably your fault for making them believe they always are.😉 3 weeks ago
  • RT  @TyronneNel : #SME Advice - Customers might pay for your product/ service, but what they are buying is confidence that it will solve a p… 3 weeks ago

Subscribe to our mailing list

* indicates required
 In Articles, Business, Newsletters

In our very first Blog we looked at the different business types you as an entrepreneur would probably need to consider when starting out, in this series of blogs we will look at these business types in a little more detail.

The most common business “type” would be a Private Company. This type of business requires formal registration with the CIPC , which should take between 5 and 10 working days.

One of the most important things to remember when registering a private company is that it is a separate legal entity from you the Shareholder (Owner). As such, it must have its own bank account and all formal documents (letterhead, invoice, legal agreements, etc.) need to have the following information displayed on them – Registered Name, Registration Number, Directors, Registered Physical Address.

The next big thing to remember when running a private company is that you could qualify as a Small Business Corporation (SBC) and be taxed on your business profits at a much lower rate than the standard 28%. Besides the savings in income tax, there are also massive savings through accelerated depreciation and dividend taxes.

When your business reaches a point where you need to hire staff or begin invoicing more than R1million per year, the standard procedures as any other business will apply and you will need to register the business for UIF, Workman’s Comp, PAYE and VAT.

Lastly we need to look at the risks associated with owning and managing a private company. One of the perks of the private company being a separate legal entity is it is responsible for its own mistakes and the shareholders can only lose what it is that they have invested and no more. The downside risk here though is, if you the shareholder are also a Director, then you could be liable for any losses if it can be proven that you were not acting in the best interest of the company.

We recommend attending a Directors responsibility course as the new Companies Act, comes down pretty hard on delinquent directors.

In this series I will be diving a little deeper into many of the topics I raised in our “Year in the Life” of a business series started last year, so feel free to visit our website to see what we’ve already covered.

At Phezulu VBO we do more than just assist clients with their company registrations, we are your “one stop SME shop”, assisting with everything from Accounting, Business Management, BEE, Consulting, Company Registration to Payroll and Mentoring.

For more information, please visit our website www.phezulu.net or give me a call on 010 003 8558

Recommended Posts

Leave a Comment

Start typing and press Enter to search