registration of a sole proprietor

[Hyltz]

Hi all

Please could someone tell me what the current requirements are to register a "sole proprietor".

I do understand the legal implications\risks regarding this topic, I am reading conflicting reviews from various websites for this topic here in SA. Some websites are saying you can just start trading "be it under your name that appears in your ID" and others are saying you need to register with cipro.

I would appreciate any advise in this regard.

Many thanks in advance.

 

[mika1000]

http://www.standardbank.co.za/porta...toid=94cd08f82045b210VgnVCM100000c509600aRCRD

http://corp.co.za/e-compare2.htm

http://www.cipc.co.za./IWantTo.aspx

 

[froot]

You don't have to register a sole prop/ partnership.

 

[Hyltz]

Thanks for the links there Mika

After looking through them I take it one must register the with CIPC?

 

[Hyltz]

Hi Froot.

What if I would like to do business under "sea side consulting" (example) and not under my personal name?

 

[dewmap]

You only have to register your business name with CIPC if you are conducting your business as a Sole Prop. This can be done on the CIPC website and costs R50

 

[Kosmik]

Why do you have to register? As far as I'm aware there is no legal requirement and the link above for Standard Bank suggests the same.

A sole proprietorship is a business owned by one person. This type of business is not a separate legal entity as the owner enters into all transactions in their personal capacity. There are no agreements or articles stipulating how the business must be managed. The sole proprietor is the owner of all the business' assets and is responsible or fully liable for all the business' debts. The sole proprietorship terminates when the owner stops carrying on business. The advantages of a sole proprietorship are:
•No legal formalities are required to establish a sole proprietorship

 

[etwylite]

You only have to register your business name with CIPC if you are conducting your business as a Sole Prop. This can be done on the CIPC website and costs R50

You do not have to register with CIPC (that is only for companies)
You need to register with SARS only if you want a VAT no. but dont need to unless your projected turnover is in excess of R1mil pa
You will merely be "your name" trading as (T/A) seaside consulting.
You open your bank account in this name.

remember a sole proprietor is NOT a separate legal entity. It is merely an alter ego of yourself.

 

[froot]

@whoever says you have to register your business as a sole proprietor is talking nonsense. What etwylite says about all there is to know about S.P., except that one can add that you are liable for the business' debts.

 

[Pato]

OK, I am so confused. I also need to register my company, had been actually trading for an year already but did not make much money but now the business is picking up and I need to register for taxes, but I don't know what taxes do I have to register for and I am affraid they may look back at my incomes? (?) how does it work and is there anywhere that I can go for advise?

 

[Hyltz]

Many thanks for the feed back and for clearing that up.

 

[Beachless]

OK, I am so confused. I also need to register my company, had been actually trading for an year already but did not make much money but now the business is picking up and I need to register for taxes, but I don't know what taxes do I have to register for and I am affraid they may look back at my incomes? (?) how does it work and is there anywhere that I can go for advise?

You pay the taxes on the money earned with your normal tax.

So you take all the income you received during the tax season whether you had some as a salary, interest earned, sales through your SP and declare that.

 

[bekdik]

It may be worth getting a bookkeeper to handle the paperwork.

With the T/A name, make sure that there isn't a cc or pty with the same name. i guess this would be a use for registering, as it would protect the trading name.

Can one register a Sole Prop with the CPIC? Would VAT registration would be enough to protect the name???

 

[chrisc]

You cannot protect the name of it is a sole proprietor. Only a pty can do this. Is the name something you think others might like to use? I have had 3 sole proprietors in my time and never experienced that trouble

I would have a word with an accountant, just to see you are keeping a set of books correctly

 

[bekdik]

You cannot protect the name of it is a sole proprietor. Only a pty can do this. Is the name something you think others might like to use? I have had 3 sole proprietors in my time and never experienced that trouble

I would have a word with an accountant, just to see you are keeping a set of books correctly

I do know of some that have had a problem.

 

[printworx]

Hi guys... guess this is a little late, but if anybody picks up on this post I was wondering what a Sole proprietor should use when asked to fill in a company number, especially in a form which has that field set as mandatory?

Kind Regards

 

[froot]

Hi guys... guess this is a little late, but if anybody picks up on this post I was wondering what a Sole proprietor should use when asked to fill in a company number, especially in a form which has that field set as mandatory?

Kind Regards

They won't have a "company number".
I'm not sure whether sole prop's or partnerships, when registered with CIPC, get enterprise numbers.