Good day to all our Let’s talk business members,
Recently, we have done a blog on corporate governance and subsequently we researched a couple of links that will assist you and make your life easier as you are in the process of aligning your business.
The perfect entrepreneur and business governance
According to Claire Vogelpath from BKM Attorneys: “Entrepreneurship is more than simply “opening up a small business.” It is rather a progression through which individuals recognise opportunities, distribute resources, and generate value. This creation of value is often through the identification of unmet needs, wants and/or opportunities for change identified in our society. Entrepreneurs view “problems” as “opportunities”. Entrepreneurial success however is not only the ability to foresee these opportunities in the marketplace, initiate change (or take advantage of same) and create value through solutions, however one has to have the right tools and business governance structures to create a successful business moving forward into the future.”
- Business Documents
Business in a box is a paid subscription if you want to use the forms and contracts as it is. You can however use it as a template and type your own document if you do not want to pay a subscription. http://www.business-in-a-box.com
- Business Entity Classification
This decision has to be made with the end in sight, bearing in mind that different business entities have different legal requirements and tax implications. In the past close corporations were the entity of choice by budding entrepreneurs, however the introduction of the new Companies Act 71 of 2008 has phased out close corporations as a business entity and entrepreneurs now have the option to either choose between being a sole proprietor, a private company or a personal liability company.
- Registering a company
SME Toolkit is a South African based company that focusses on helping entrepreneurs to succeed. If you want more information on how to register a private company you can read the following article. http://southafrica.smetoolkit.org/sa/en/content/en/57889/Registering-a-company
In order to register a company one would require the following information:
- name of the company (a few names are required in order of preference)
- registered and/or street address
- postal address
- financial year end (if any)
- directors information (if any) which includes:
- full names
- identity numbers(if not South African then date of birth and where director is from) passport number (if any)
- residential addresses
- companies business address
- postal address
- cell phone numbers
- email addresses
Shareholder/s details (if any) which include:
- full names
- addresses
- auditor details (if any as in terms of the new Companies Act one is not required to have auditors)
- name of auditors
- designated person at auditor firm
- postal address
- street address and
- their professional status i.e. chartered accountants as well as their practice code
- Do you think about taking in a business partner?
Taking a partner in business is something that need to be carefully considered. The reasons for a partner should be solid. Such as:
- Financial investment.
- Skills or time investment.
- Can I see myself with this person for the next 50… years?
Read the following articles to help you make a sound decision.
https://www.fundera.com/blog/small-business-partnership
- Company Name
Your first step is to identify and register a company name that people will remember and that will highlight and hint what you do and reflect your company’s corporate personality. In order to attend to this effectively, one has to check with CIPC (the Companies Intellectual Property Commission) whether your chosen name is available for registration and/or whether there are any possible conflicts. This can be attended to on the “name search” function provided on www.cipc.co.za.
- Do you have a close corporation and you want to change it to a PTY (LTD)
The new Companies Act of 2008 came into effect on the 1st of May 2011, which also saw the replacement of Cipro with the Companies and Intellectual Property Commission (CIPC). At that time the government has also replaced close corporations with PTY (LTD)’s. If for any reason you want to change your company to a PTY (LTD) you can do it at CIPC at no cost.
- Statutory requirements to register a business
There seems to be so many legal and statutory requirements when setting up a business that sometimes it’s hard to know where to start, and whether or not you’re doing everything you’re legally obliged to do.
With the new Companies Act having come in to play, the rules have changed, so let’s look at that and go through the steps to getting your business registered.
- Register your company
- Register with SARS
- Register as a VAT vendor if necessary
- Register for employee tax
- Register with Department of Labour
- Register with UIF
For more information please read the following articles
http://www.labour.gov.za/DOL/documents
Next week we will look at employees, employee contracts, UIF etc.
Business greetings
Miskyah
