How to register a new company?? Please help

BDG2010

Active Member
Joined
Jun 16, 2011
Messages
90
Hi Guys,

I’m a 21 year old student at Wits studying a BSC Property Studies. I’ve got a very entrepreneurial mind and drive and have a successful events company that I just run as a sole proprietor.

Anyway iv recently had a great idea for an expo and iv met with all the parties involved as well as exhibition managers etc and all is on track, however, I need to register a company to go ahead with the expo and I’m just completely lost, some help will be much appreciated.

Basically I know I will need to register for VAT because I expect sales turnover to exceed R1mil, and I know there are accountants out there that can do this for me but they charge substantial fees for what I believe I could do, I also would like to learn how to do this myself.

I’ve been on the CIPC website but when registering as a user I get confused, under miscellaneous information, it has customer type, and what do I put there? And am I juristic person or is that only for companies etc? I’m a natural person hey?

Also, if I register on CIPC where do I register for VAT and Income tax etc? PAYE, UIF etc? Is that all done under the CIPC?

Also do I need an accounting officer to represent the company?

What will all this cost? Is it better to just get it done through an accountant and not worry about it all?

Unfortunately degrees create employees and these types of things are not taught at University.

All your help is much appreciated, please ask any questions you may need or anything!

Thank you
 

qwertydude

New Member
Joined
Jul 29, 2011
Messages
5
A company is not easy to do unless you know what you doing. You need an accounting officer etc. best place is Shelf Company Warehouse. The whole process change in May this year.

CC are no more and as a Director of a company under the new company act you have legal obligations.

G
 

Ancalagon

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Feb 23, 2010
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Care to enlighten us on what those obligations are? Also looking to start a new company.
 

DJ...

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Jan 24, 2007
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Care to enlighten us on what those obligations are? Also looking to start a new company.

It depends on the type of company registered and they can seriously affect the scope of limited liability.

OP, it would be best to register a pty Ltd and you can do so through any shelf company. You will need to understand the intricacies involved therafter though, relating to how you are incorporated and various articles defining the operation, including the shareholders agreement. These are absolutely imperative to get right from the get-go. As a company officer this is solely your responsibility.

Yes, you will need an accounting officer. Without a shadow of a doubt. You will also need to have your books audited on an annual basis.

VAT registration does not happen through CIPC. It happens through SARS and is a very easy process.

I run a company specialising in helping individuals go through this entire process but unfortunately I simply cannot take on any more clients right now for various reasons...
 

BDG2010

Active Member
Joined
Jun 16, 2011
Messages
90
Could you perhaps recommend somebody?

Iv seen rapid registrations do the registration, income tax registration, PAYE,SDL, UIF registration, tax clearance certificate and VAT registration for R2000. Is that worth it?

Thank you for your help..
 

DJ...

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Jan 24, 2007
Messages
70,287
Could you perhaps recommend somebody?

Iv seen rapid registrations do the registration, income tax registration, PAYE,SDL, UIF registration, tax clearance certificate and VAT registration for R2000. Is that worth it?

Thank you for your help..

That's well worth it considering your lack of knowledge on the subject.

I cannot stress enough how important it is for you to have your shareholders agreement setup correctly as well as the articles and memorandum of association. Please do your research in this regard or use the services of a lawyer to structure these for you...
 

Giftig

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Dec 30, 2007
Messages
94
I can register the company for you for a very small fee. PM me. part of my job is to register companies.
 

Mbuzi

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Aug 31, 2010
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1,663
Could you perhaps recommend somebody?

Iv seen rapid registrations do the registration, income tax registration, PAYE,SDL, UIF registration, tax clearance certificate and VAT registration for R2000. Is that worth it?

Thank you for your help..

Tax side is easy, first register the company and then deal with the tax stuff.
 

Tigerman

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Joined
Sep 29, 2011
Messages
66
You want your business to be a 'sole proprietor'? There are various forms of business entities: SP, partnership and for-profit companies (private, listed. Close corporations fall away under new companies act).

As a SP you don't have to register as a 'company' with CIPC; as with partnerships, SPs legally trade under the owners/partners names - u may often see Joe Bloggs T/A *business name*.
Your business income and expenses is combined with your personal and you pay income tax at personal tax rates (marginal rate 40% over R500K). You may claim all business related costs. BUT KEEP YOUR PERSONAL AND BUSINESS DOC'S SEPARATE.
The drawback is u are personally liable for the business' liabilities.

To register as a company - best get an accountant or lawyer to do it for you but can do it yourself if you want - you as shareholder(s) are separate from the business and are not personally liable for liabilities ie the business is a 'juristic person'. But you will need a registered accounting officer and/or auditor to audit financials, unless you opt for an annual 'review', when an auditor is not needed. But u will still need the accountant. Accountants/auditors charge up to R1000 plus per hour to audit and/or prepare financial statements; a couple of hundred to do the bookkeeping.

To register with CIPC you need to lodge a) notice and b) memorandum of incorporation. To reserve a company name costs R50 online (form CoR 15.1A). Even if you don't want to register, it may be useful to reserve the name for later and/or your exclusive use.

Other info: open a bank acc in business name; register with SARS for VAT, income tax, PAYE and SITE; Dept of Labour for UIF, SDL;Commissioner of Compensation. Last two, if you have employees. These are easy to do yourself if u don't mind getting in the relevant queues at SARS and Labour.

You may benefit if u register with SARS as small business corporation.
 

Ancalagon

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Feb 23, 2010
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That's well worth it considering your lack of knowledge on the subject.

I cannot stress enough how important it is for you to have your shareholders agreement setup correctly as well as the articles and memorandum of association. Please do your research in this regard or use the services of a lawyer to structure these for you...

I'll probably also take the R2k route to get everything sorted.

But first there is a lot of code for me to write before I'm ready to do that! Next year...
 

etwylite

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Joined
Sep 5, 2008
Messages
958
Lol...if you think registering for VAT is easy then you haven't done it in a while.

If you are going to need an accountant, (you dont need to be audited as a new pty ltd if you under certain thresholds) might as well start contact by having them register you for everything etc.

PM me for a decent CA SA who is fair and knows what hes doing. Been helping me for years and doesnt charge for every phone call like some lawyers I know.:D
 

JustAsk

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Joined
Sep 11, 2007
Messages
3,452
Hi Guys,

I’m a 21 year old student at Wits studying a BSC Property Studies. I’ve got a very entrepreneurial mind and drive and have a successful events company that I just run as a sole proprietor.

Anyway iv recently had a great idea for an expo and iv met with all the parties involved as well as exhibition managers etc and all is on track, however, I need to register a company to go ahead with the expo and I’m just completely lost, some help will be much appreciated.

Basically I know I will need to register for VAT because I expect sales turnover to exceed R1mil, and I know there are accountants out there that can do this for me but they charge substantial fees for what I believe I could do, I also would like to learn how to do this myself.

I’ve been on the CIPC website but when registering as a user I get confused, under miscellaneous information, it has customer type, and what do I put there? And am I juristic person or is that only for companies etc? I’m a natural person hey?

Also, if I register on CIPC where do I register for VAT and Income tax etc? PAYE, UIF etc? Is that all done under the CIPC?

Also do I need an accounting officer to represent the company?

What will all this cost? Is it better to just get it done through an accountant and not worry about it all?

Unfortunately degrees create employees and these types of things are not taught at University.

All your help is much appreciated, please ask any questions you may need or anything!

Thank you

For a private company (Pty)LTD...
You DO NOT need an accounting officer.
You DO NOT need your books audited.

Its fairly easy to do...

You need to deposit funds into your cipc wallet after you registered.
You need to file a name reservation,notice of incorporation and memorandum of incorporation (there's more than one,make sure you choose the correct one).In your case it should be for a PRIVATE COMPANY
Name reservation takes a while,a company registration about a week,but you can start trading with your registered company number without a name.

I’ve been on the CIPC website but when registering as a user I get confused, under miscellaneous information, it has customer type, and what do I put there? And am I juristic person or is that only for companies etc? I’m a natural person hey?
Put in public,choose natural person.Note,this is not the info that comes on your company registration,only to interact with the website.

For VAT:above 50k voluntary,above R1MIL required by law.This is done through SARS.AFAIK you can't register for VAT for anything below 50k.

Someone mentioned the 'trading as".A new company can't do it anymore.

EDIT:It will cost you roughly R50 for name reservation online and about R225 for a new company.You still need to post the forms with id.
All the info is on the website,just take the time to read through it.
 
Last edited:

BDG2010

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Joined
Jun 16, 2011
Messages
90
Thanks for all the help guys. Basically I will be the only shareholder and the only director so surely just getting standard documentation will be okay.

So If I employ salespeople on a commission based contact only, do I still need to register for uif and paye etc?
 

GrootBaas

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Joined
May 25, 2006
Messages
1,057
You first need to get the company name and number with CIPC as mentioned above before you can even think of registering for taxes.

You will then need to register with SARS for Income Tax (IT77 form). You can then register for VAT which is not so easy anymore as SARS has a lot of requirements. Download the VAT101 from the SARS website and have a look at the required documents to be attached. This includes municipal accounts or lease agreements (for verification of address) for the business and yourself, original bank statements, proof of income etc.

If you employ salespeople only on commission then you have to register for PAYE (EMP101 form on SARS website) as you will have to deduct tax, but there is no UIF on commission. (but you just as well can register for UIF with SARS on that same form).

Remember to submit all tax returns or declarations (EMP201's, VAT201's, IRP6's and IT14's) when due. SARS is very quick with the penalties nowadays.

I also want to stress to PLEASE keep decent records of your finances from day one. I am still amazed at some of our clients not having a clue what payments or receipts (that they made!) were for and this is a huge liability for the business. With the new companies act there is more responsibility on the shoulders of the shareholders so you have an obligation to run everything properly and can be held personally liable should things go south in certain circumstances. I would suggest even reading through the new companies act (it reads a lot easier than the old one) at www.acts.co.za just to give you an idea. You should really consider getting decent accountants to help, it will make a huge difference.

Good luck!
 

BDG2010

Active Member
Joined
Jun 16, 2011
Messages
90
Thankyou everybody for all the help. I think I will be sitting down with an accountant soon to discuss it all.

Just a quick question, if I had to do it all myself, how much would registration, income tax registration, paye, sdl, uif, tax clearance certificate and VAT registration cost me??
 

GrootBaas

Expert Member
Joined
May 25, 2006
Messages
1,057
Thankyou everybody for all the help. I think I will be sitting down with an accountant soon to discuss it all.

Just a quick question, if I had to do it all myself, how much would registration, income tax registration, paye, sdl, uif, tax clearance certificate and VAT registration cost me??

I am not sure about the registration of the company with CIPC, I think that does incur a cost but usually not much. To register for taxes is free of charge; you can do that yourself by completing the forms and going to a SARS branch.
 
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