Business registration advice

[SpartanX]

Hi guys

I want to register a business, and I have the following questions:

Is swiftreg.co.za a better service to use?

If I want to register a company name, for example, "Apples Bananas Company", I also want to be able to refer to the company as "AB company". How do I Go about registering a name? Do I just register "Apples Bananas Company" and then I can freely refer to the company as "AB company" as I feel?

Do I need to have a Tax clearance certificate immediately?

Thanks for any input.

 

[bchip]

In the registration process there is a bit where it asks for trade name or trading as.
Im not sure how strong it holds up as "patented" (versus the registered name) but it is common practice
to have a similar (but still slightly different) trading name.
As long as your trading name isnt similar to a big corporate no-one will have an issue with it.
(Maybe just google the names a bit before registering)

Once registered you need to apply for registration at SARS for tax purposes.
When that is complete you can get a tax clearance certificate for the company.
You do not have to have a tax clearance certificate in your personal capacity to register a company.

Hope that helps.

 

[Frikkenator]

I'm not sure about Swiftreg, we've used Shelf Company Warehouse (http://www.pty-online.co.za/) twice, and I suspect swiftreg will be much the same, and it is a much easier option than doing it yourself. Just costs a bit more obviously.

So if you register Apples Bananas Company then you can just use "Apples Bananas Company trading as (or t/a) AB Company", but all of your paperwork need have that on then and the bank account will be in your registered company name. You also need to provide 3 possible names with registration in case some options are already taken.

Unless it is really urgent, register a new company rather than buying a shelf company.

You don't necessarily need tax clearance immediately, but it is valid for a year and it might be required at some stage so just get it at the start.

 

[deweyzeph]

I can vouch for SwiftReg, have used them to register a limited company before. Good service and had a brand new limited company in 2 weeks.

As mentioned before once you have your company documents you will then need to register your company with SARS for income tax (and PAYE too if you plan to pay yourself or anyone else a salary). You can either do this yourself or get a tax consultant to do it for you on your behalf. I think SwiftReg also offers this as an extra service but they will obviously charge you extra for this.

A tax clearance certificate isn't necessary unless there's a specific reason you need one. The only instance I've come across where a tax clearance certificate was needed was when doing business with a big corporate as part of their supplier due diligence. But otherwise in the normal course of business a tax clearance certificate is not necessary.

 

[Kayoss]

You'll need a tax clearance certificate if you wish to get an importers/exporters code.

Regarding your name, if you register your business as "Apples Bananas Company" then I'd recommend that you reserve the name "AB Company" as well (reserving a name isn't that expensive).

 

[SpartanX]

Thanks for all your answers guys, it's all clear now. Thanks again.

 

[f2wohf]

Just do it directly with CIPC, it's not that hard and you don't need any middlemen.

You'll need to reserve the name with a CoR 9.1 and then once you get the CoR 9.4 issued you can register it. You can check for the document called Service Delivery Standard on CIPC website, all the required process is detailed in it.

You'll need to register to SARS and register for VAT also. This is not very complicated either.

The tax clearance will be mainly required if you want to export or to bid for tenders. However, if you supply companies, some companies ask it for you to be approved in their supplier's list.

PM me if you need any further detail.

 

[deweyzeph]

Just do it directly with CIPC, it's not that hard and you don't need any middlemen.

You'll need to reserve the name with a CoR 9.1 and then once you get the CoR 9.4 issued you can register it. You can check for the document called Service Delivery Standard on CIPC website, all the required process is detailed in it.

You'll need to register to SARS and register for VAT also. This is not very complicated either.

The tax clearance will be mainly required if you want to export or to bid for tenders. However, if you supply companies, some companies ask it for you to be approved in their supplier's list.

PM me if you need any further detail.

You only need to compulsorily register for VAT if you are going to turnover more than R1 million a year. You can voluntarily register if you turnover more than R50 000 in year.

 

[f2wohf]

You only need to compulsorily register for VAT if you are going to turnover more than R1 million a year. You can voluntarily register if you turnover more than R50 000 in year.

Being register makes it easier for the VAT process even if the turnover is low, but you need to have a few sales done before being able to apply for it.

 

[deweyzeph]

Being register makes it easier for the VAT process even if the turnover is low, but you need to have a few sales done before being able to apply for it.

Applying for VAT registration is not a straightforward affair. Due to VAT fraud SARS really puts applicants through the ringer if they want to voluntarily register for VAT. You can expect the proverbial full cavity search if you do apply, including a site visit from SARS's VAT inspectors. Although I don't quite know what they hope to achieve by doing this especially if your sales consist of services and you work from home.