Setup a Partnership ?

Dolby

Dolby

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What are the steps involved?
And what is the cost involved?
And also - what are the disadvatanges?

Online type e-commerce business that shouldn't generate more than R100,000.00 turnover in a year
 
Dolby said:
What are the steps involved?
And what is the cost involved?
And also - what are the disadvatanges?

Online type e-commerce business that shouldn't generate more than R100,000.00 turnover in a year
Click to expand...

Sign a partnership agreement.

Free to Rxxxxx.

Your halve is still in your own estate. Personal liability to creditors etc.

Rather do it through a Close Corporation. Cheap, easy to manage, some protection from creditors, members' interest easy to sell/change.
 
Says I need an accounting officer? :/

On Page 1 of the CK 1 form the name and practice number of the Accounting Officer must be provided
An original signed letter from the Accounting Officer, confirming his/her consent to act for the CC must accompany the CK 1 forms.
The Accounting Officer must be registered with one of the following institutions:
1. The South African Institute of Chartered Accountants (SAICA)
2. Auditors registered in terms of the provisions of the Auditing Profession Act, 2005(CA)
3. The Southern African Institute of Chartered Secretaries and Administrators (ICSA)
4. The Chartered Institute of Management Accountants (CIMA)
5. The South African Institute of Professional Accountants (SAIPA)
6. THE IAC who have obtained the Diploma in Accountancy (IAC)
7. The Association of Chartered Certified Accountants (ACCA)
8. The Chartered Institute of Business Management (MCIBM)
9. The South African Institute of Business Accountants (SAIBA)
10. The South African Institute of Government Auditors (SAIGA)
 
CIPRO don't register partnerships, but you do need a partnership agreement.
Any lawyer will advise very strongly against a partnership. Remember that you incur personal joint and severable liability. And if you're married ICP, you're putting your joint estate at risk. Don't do it!
CC is a better option for the smaller business.
Re the accounting officer - you will have to get someone to sign off on your financials at the end of the year, no? ie you do need an accountant. Find one you like and appoint him.
 
To make a little extra beer money? ;)
 
I'm doing Accounting exam next week that covers CC & Partnerships (both accounting and legal aspect) and all I can say: Don't do partnership

As my Dad would always say: Partnership is a sinking ship.
 
Cant register partnerships all it is, is a legal contract (written or verbal) between 2 or more people. (Bad idea you are and can be held responsible for your partners actions and they'll have no problem digging into your personal assets, which is even worse if your partner has none).

CC, can no longer be registered but the ones that are continue to exist and therefor you can BUY one from one of those Shelf company places :)
 
If i created an e-commerce site and wanted a secure payment gateway, I understand I need to get a merchant nmuber from the bank.

But to do this, I'd need to be a business and have a VAT number.

Basically I'm looking for the fastest and cheapest route to do this :/
 
Dolby, are you sure about the VAT requirement? it doesn't make sense.

VAT registration is a royal PITA...
 
No - I'm not sure ... I just guessed ;) I'm waiting for the bank to get back to me, but read this at www.vcs.co.za :


New merchants:

Contact your bank's Merchant Services Division. Explain that you wish to accept card's as payment. That you wish to become a 'eCommerce' merchant and that you will be using 'Virtual Card Services' to submit your transactions and therefore do not require an Electronic Data Capture (EDC) terminal. The Bank will send a consultant to visit you with the necessary forms to be completed.

The legal issues associated with being an eCommerce merchant must be discussed with the consultant and are not affected by the 'Virtual Card Services' agreement. The bank levies a charge of approximately six percent but this can be negotiated with the bank.

Once the bank has approved your application they will give you a Merchant Number and terminal Id.

Complete the Virtual Card Services Online Application Form. (Applications, Application Form)

We will provide you with Interfacing Instructions (sample code etc.) on approval of your application.
 
I assumed they'd want me to be registered?

If I can get away with NOT being a VAT vendor, even better - as I only want to try this out for 6 months to see if it's worth while.
 
Dolby said:
I assumed they'd want me to be registered?

If I can get away with NOT being a VAT vendor, even better - as I only want to try this out for 6 months to see if it's worth while.
Click to expand...

Businesses that have an annual turnover of R300 000 or more must register. But you can voluntarily register for VAT if you think you will see a benefit from it.
 
Dolby said:
No - I'm not sure ... I just guessed ;) I'm waiting for the bank to get back to me, but read this at www.vcs.co.za :
Click to expand...

I'm fairly certain VAT registration won't be a requirement.

czc said:
Businesses that have an annual turnover of R300 000 or more must register. But you can voluntarily register for VAT if you think you will see a benefit from it.
Click to expand...

It's a R1,000,000 now.
 
SiriS said:
I'm fairly certain VAT registration won't be a requirement.
It's a R1,000,000 now.
Click to expand...

Also if your business does less than R2million, you can loose your VAT number. Happened to my wifes business and thousands of others. SARS is trying to drop VAT for small businesses as it costs too much to administrate on both sides.

The rule with VAT registration now is to only do it when you SARS requests it. So speak to your accountant on it.
 
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