10 Steps On How To Start A Business
1. Business Plan
Whether you are starting a small business or exploring ways to expand an existing one, a business plan is an essential tool to help guide your decisions. It is the foundation on which to grow a dream.
Bplans is an excellent free online site where you can get business plan templates and many other excellent resources to assist you. Visit the site here.
2. Company Registration with CIPC
Business Registration establishes your company as a legal entity in South Africa. The current CIPC e-services only accommodates the registration of private and non-profit companies. All other company types are to be filed manually with documents available for completion on their website.
- Register as a customer on eServices and login with your unique customer code.
- Once logged in you are now able to register your new company.
If the above is unclear, please visit the CIPC website for a step-by-step guide.
3. Application for Company Bank Account
It is important to keep your business banking separate from your personal banking. The following are a list of standard documents required in the application for a business banking account:
- Copy of ID (per business member/individual member and or director).
- Proof of address (per business member/individual member and or director).
- Proof of physical address of business (if absent, an affidavit required for a sole proprietor).
- Bank statements – last three months (not applicable for start-up businesses and sole proprietors).
- Company registration documents (not required for sole proprietors).
- Company resolution (where more than one signatory is applicable).
Here a list of some of South Africa’s most popular financial institutions offering affordable banking services to start-up’s:
- Standard Bank: The BizLaunch account is designed specifically for start-up businesses.
- Nedbank: Nedbank has extensive experience in serving small businesses and offers a comprehensive suite of payments, investments, and finance solutions, as well as industry specialization and services that extend beyond banking.
- Absa: For all businesses, big or small, new, or established, a relationship with Absa offers true value. They understand you, your business and your ambitions and partner with you to help you grow.
- FNB: First Business Zero is a digital solution designed for the sole proprietor who wants to bank on the FNB App anytime, anywhere with a ZERO monthly account fee.
4. VAT Registration
It is mandatory for a person to register for VAT if the taxable supplies made or to be made is, in excess of R1 million in any consecutive twelve-month period. A vendor making taxable supplies of more than R5 000 but not more than R1 million per annum may apply for voluntary registration. Certain supplies are subject to a zero rate or are exempt from VAT. Vendors can now request and obtain a VAT Notice of Registration on eFiling if they are registered on SARS eFiling website.
5. Income TAX Registration number
All South African companies are required by law to be registered at the South African Revenue Services (SARS) for Income Tax. SARS eFiling is a free, online process for the submission of returns and declarations and other related services. This free service allows taxpayers, tax practitioners and businesses to register free of charge and submit returns and declarations, make payments, and perform a number of other interactions with SARS in a secure online environment.
6. Employee Tax (PAYE, UIF, SDL)
Complying with your tax obligations as a small business has been made a lot easier over the past few years. If you are starting out and need to register as a company, you will have to contact the Company and Intellectual Property Commission (CIPC). Please note that companies are first required to register with the (CIPC) offices before registering with SARS for an Income Tax reference number. Once a taxpayer registered with CIPC, SARS will automatically generate an Income Tax reference number. You are required to register for Pay As You Earn, UIF and Skills Development. The company/taxpayer must then register on eFiling to transact electronically.
7. BEE Registration (Broad-Based Black Economic Empowerment)
B-BBEE is a policy implemented by the South African Government. A certification which shows that you care about South Africa and that your business is committed to making a positive difference in society while allowing you to participate as a supplier in whichever lucrative chain. Not forgetting, focused on creating a greater black economic participation.
A business with a turnover of less than R10 million qualifies as an Exempt-Micro-Enterprise (EME) and does not require a B-BBEE certificate to be issued by a SANAS rating agency. EME business owners must complete an EME Affidavit signed by a Commissioner of Oaths instead of a B-BBEE certificate with no cost implications for the EME.
8. COIDA Registration
COIDA (Compensation for Occupational Injuries and Disease’s Act) is a government body that compensates workers who have been injured or contracted a disease at work.
COIDA Requirements:
- Company registration documents
- Certified copies of the ID’s of the directors of the company / CC
- COID Application form
9. Company Branding
Branding, by definition, is a marketing practice in which a company creates a name, symbol or design that is easily identifiable as belonging to the company. There are many areas that are used to develop a brand including advertising, customer service, promotional merchandise, reputation, and logo.
To start your brand discussion please feel free to contact us.
10. Platforms to market your new business via social media
We trust that these 10 steps provide you with enough access to the correct areas in order to kickstart your business. Indeed even if you have a current business that needs to get to the next level of it’s growth this basic guide will also be of benefit to you. Should you have any queries or questions don’t hesitate to send us an e-mail at [email protected]
Share this article:
