Help a newb'...starting and running a business...

[Merlin]

Hi everyone,



The SARS import legislation presents several challenges to me.

I tend to have several inbound international parcels per year, to support one of my hobbies. I live in CPT and my family, who receive the bulk of the parcels, live in KZN. Before you ask, I travel home to KZN once or twice per year.

If they collect on my behalf more than thrice per year now, we're going to face a battle with the import restrictions.

#1 If you order online, from a commercial retailer, how do you specify your importer number, or is it automatically tied to your name upon collection from the post office, courier, etc.?

I'm now looking at setting up a company and tying the importer registration to that.

#2 Presumably I can then, somehow, make my family members of this company. Is this possible?

#3 What's involved with operating a company like this? Do I need to pay an accountant annually, to inspect...what? If no money is traded through the company, what then?

#4 Does a company need to specifically state what it does? I mean, could I import parcels for my origami hobby today, sell cokes at the park tomorrow and fix a laptop for someone the day thereafter, all through the company?

Yes, I realize that I'm asking ignorant questions here, but knowledge has to start somewhere.

Thanks.

 

[The_Ogre]

Hi everyone,


#1 If you order online, from a commercial retailer, how do you specify your importer number, or is it automatically tied to your name upon collection from the post office, courier, etc.?
You don't. Your courier will call you and ask for your importer's code.

#2 Presumably I can then, somehow, make my family members of this company. Is this possible?
Yes

#3 What's involved with operating a company like this? Do I need to pay an accountant annually, to inspect...what? If no money is traded through the company, what then?
File your annual return on the CIPC site with null values

#4 Does a company need to specifically state what it does? I mean, could I import parcels for my origami hobby today, sell cokes at the park tomorrow and fix a laptop for someone the day thereafter, all through the company?
Yes, you can trade whatever you like with your company, as long as it's not contraband.

 

[Merlin]

Fantastic! Thank you H B. Much appreciated.

 

[The_Traveller]

If you use post office then yes you will face some difficulties, but if you ship with DHL and the likes, they will use their importers code to clear your parcels for you on condition they below R20k in value per shipment.

If you start your own company , you will need to submit your financials (even non profit organizations need to submit financials ], it’s not just CIPC you have to worry about.
If you don’t do much trading via this company, then sure SARS isn’t going to come knocking before you die, but if they do, it can be an unnecessary headache, especially if you not familiar with how the game isn’t played.

 

[Merlin]

Thanks T_T.

This ridiculous legislation is forcing me to look into the options though.

Aloota continua.

 

[The_Traveller]

Actually , if you start running your life via the company, you’ll enjoy the tax benefits. You will need a very smart bookkeeper though, one who knows every loophole there is.

Good luck!

 

[Merlin]

Actually , if you start running your life via the company, you’ll enjoy the tax benefits. You will need a very smart bookkeeper though, one who knows every loophole there is.

Good luck!

Thanks T_T.