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 :  @zamarcashton   @jayshnaidoo   @DineoTsamela   @gradidgec  You’re too kind Sir. #Accounting #SMEtaxation & #Mentoring via  @Phezulu … 3 days ago
  • “Can my business survive my death?” None of us are immortal! Here are a few tips that may help your #SmallBusiness… https://t.co/E0iOmLwoCl 3 days ago
  • Need to #FindanAccountant in Randburg? Laurie has been a member of Phezulu since 2012. To find out more visit… https://t.co/LJ0HkM0LC4 7 days ago
  • Invest in a CORPORATE COMMUNITY in the heart of MAURITIUS and be eligible for an INVESTORS PERMIT to work and live… https://t.co/Gn4KpESySR 7 days ago
  • ✅REMINDER – PAYE submission is due TODAY!✅ Be sure to pay over PAYE to SARS by the 7th to avoid penalties. Talk to… https://t.co/WAM8CFs2Yd 7 days ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, at this time of year you have two choices, (1) slow down and relax like the main stream or… 7 days ago
  • INVEST in a CORPORATE COMMUNITY in the heart of MAURITIUS BSP TOWERS consists of a portion of freehold land togethe… https://t.co/6VwRiSwo9Z 1 week ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, the best gift you can give yourself is a clear mind! Focus on only two or three major act… 1 week ago
  • RT  @Phezulu_Group : Need an accounting firm in JHB East? Phezulu VBO has a franchise located in Alberton, where Hennie Venter is available… 1 week ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, when you’re complaining that it’s taking too long to become a success, just remember: You… 2 weeks ago
  • Need an accounting firm in JHB East? Phezulu VBO has a franchise located in Alberton, where Hennie Venter is avai… https://t.co/LxHOWXafZJ 2 weeks ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, don’t delay the hard choices! Your success is determined by the hard choices you either m… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, your banker is not your friend! They have a job to protect your savings, so don’t get ups… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, businesses might come and go, but entrepreneurs are forever! Today’s failure is tomorrow’… 2 weeks ago
  • RT  @TyronneNel : #SME Advice - Dear entrepreneur, if you’re worried about the small business ecosystem - ask yourself: “What are you doing… 3 weeks ago
  • ✅REMINDER✅ MANUAL Submissions for VAT is due TODAY! ELECTRONIC Submissions for VAT is due by the 30th of November!… https://t.co/oMtrEwXSyj 3 weeks ago
  • RT  @RocketsLife : AfroCoustic Thursdays at  @RocketsLife . Weekly lineups of incredible SA talent, in support of  @savingthewild_  #rocketsli… 3 weeks ago
  • What an awesome achievement Guys, honoured to have played a small part https://t.co/VpPfli08BA 3 weeks ago
  • RT  @ThinkroomTalk : Thanks to all who helped make #GEW2018 fun and a great success! We publish our research on findings of #21daybusinesscha… 3 weeks ago
  • Grab these Business and Personal Checklists to ensure you don’t forget anything before closing up shop for the holi… https://t.co/dJiNd2Nt2a 3 weeks ago

Subscribe to our mailing list

* indicates required
 In News

statutory registrations for your businessOk inspired entrepreneurs, so you’ve registered your business entity and opened your bank account and now you’re probably thinking “I don’t want to get in to trouble with SARS, so what do I do now?”

Well that’s exactly what we will be covering with today’s article. Statutory Registrations are a very important part of running your business legally, below is a list of registrations that need to be completed at each stage of your business cycle.

  • Income Tax – All businesses need to register with the SARS for Income Tax. In the past this registration was done automatically when you registered your business with CIPC, however Government in their wisdom decided this made life too easy for SMME’s, therefore you now have to visit your nearest Revenue office and complete an IT77C whereupon they will register your business for income tax. Now it’s important to note that it’s not just your business entity that needs to be registered for income tax, ALL entrepreneurs also need to register for Income Tax as a provisional Tax Payer. So while you’re at the Revenue office, grab an IT77 form and register yourself as well.

The moment you decide to employ staff, besides the headaches of the Basic Conditions of Employment Act, you will need to complete the following registrations:

  • UIF (Unemployment Insurance Fund) – All business entities (this includes Sole Proprietors) who employ staff that work more than 21 hours per month are required to register with the Department of Labour as an Employer. Once you are registered you will need to submit a UI-19 form to the Department of Labour whereupon you will list your employees and what they earn.

 

  • Compensation Commissioner (Workman’s Compensation) – All business entities (this includes Sole Proprietors) who employ staff, as above, need to register with the Compensation Commissioner. Workman’s Compensation is essentially a form of insurance that covers you and your employees from any workplace accident. There was a mistaken belief that only construction or “trade” related businesses were required to register with the Compensation Commissioner, unfortunately, this is not the case!

 

  • PAYE (Pay as you Earn) –  All business entities (this includes Sole Proprietors) who employ staff that earn more than R67 111 per year are required to register for PAYE with the Receiver of Revenue.

 

  • SDL (Skills Development Levy) – All business entities (this includes Sole Proprietors) with a payroll that exceeds R500 000 per annum are required to register for SDL. There is no separate form for this registration and if it is not done when you register for PAYE, you can ask SARS to activate it when you see that you will exceed the R500 000 per annum payroll threshold.

The monthly income from your business is now growing, but instead of making you happy, it’s making you worry. The thing it’s making you worry about is……. VAT!

  • VAT (Value Added Tax) – Well no need to worry, unless your business is turning over more than R1 million per annum (R83 333.34 per month) there is no need to register. Business entities (this includes Sole Proprietors) can voluntarily register for VAT if their Turnover is below R1 million. I know, I hear you saying “Why!!”, but in some cases it is beneficial to do so.

There you have it, besides industry specific registrations, Liquor Board, Health Department, etc., the above registrations are what the majority of small businesses will minimally require to begin operating legally. Unfortunately as your business grows, there are still more Statutory Requirements that you will need to comply with, which we will cover later.

Now I suppose you’re looking at the above registrations and are probably thinking, 6 registrations, 6 forms to complete! Well we wish it was that simple, unfortunately the above registrations require the following forms to be submitted annually:

  • Income Tax:     3 forms (IRP6/1, IRP6/2 and IT14) – same for you as a Sole Proprietor.
  • UIF:                 12 forms (1 x UI-19 form for each month).
  • Comp Com:      1 form submitted annually.
  • PAYE:              14 forms (1 x EMP201 form per month & then 2 x EMP501 recon forms).
  • SDL:                 covered by PAYE form.
  • VAT:                6 forms (1 x VAT201 for each VAT cycle)

WOW, minimally 36 forms to submit annually and that’s just to cover the basics. Next time, we’ll look at the voluntary registrations, good luck…

PheZulu Business Management

Recent Posts

Leave a Comment

Start typing and press Enter to search

How to choose a Business Entity as a entrepreneurYou dont need to be an accountant to understant your income statement