Small Business start up.

Pitbull

Pitbull

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Mila said:
Next Question.

Do I register a company before or after a business loan has been secured?
And for a one man show what would be the best.
A sole proprietor or a private company?
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YingYang said:
If you are willing to bear all the risks then go for a sole prop.

99% people would move the risks into the name of the company.

And to answer your first question, you should have registered the company beforehand, however it will be a bit more difficult to get financing that way.

HTH
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As mentioned above it all depends on risk.

If the business goes tits up should the company carry the liability or you in your personal capacity? This is the biggest factor.
 
spiderz

spiderz

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YingYang said:
If you are willing to bear all the risks then go for a sole prop.

99% people would move the risks into the name of the company.

And to answer your first question, you should have registered the company beforehand, however it will be a bit more difficult to get financing that way.

HTH
Click to expand...

Also, If you register a company it has to be audited every year which is an additional cost.
 
Mila

Mila

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YingYang said:
If you are willing to bear all the risks then go for a sole prop.

99% people would move the risks into the name of the company.

And to answer your first question, you should have registered the company beforehand, however it will be a bit more difficult to get financing that way.

HTH
Click to expand...


Thank you.
 
Mila

Mila

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So Who has handed the bank a business proposal. My brain feels like mush. :eek:

I'm almost finished ( yeah I know I'm slow but I have to google everything. :eek:)

This will me a micro business, How easily do you get a loan with a proper good business proposal?

I mean they dish our car loans to people left right and center, this loan will be for less than a small car. With collateral that can cover the whole loan.
 
Pitbull

Pitbull

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Mila said:
So Who has handed the bank a business proposal. My brain feels like mush. :eek:

I'm almost finished ( yeah I know I'm slow but I have to google everything. :eek:)

This will me a micro business, How easily do you get a loan with a proper good business proposal?

I mean they dish our car loans to people left right and center, this loan will be for less than a small car. With collateral that can cover the whole loan.
Click to expand...

Then you should have no problem at all getting the loan ;)
 
G

goga

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Jun 17, 2007
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113
Mila said:
So Who has handed the bank a business proposal. My brain feels like mush. :eek:

I'm almost finished ( yeah I know I'm slow but I have to google everything. :eek:)

This will me a micro business, How easily do you get a loan with a proper good business proposal?

I mean they dish our car loans to people left right and center, this loan will be for less than a small car. With collateral that can cover the whole loan.
Click to expand...

Mila, if the amount is small and depending on your age -> consider www.nyda.gov.za
Youth grant fund (youth ends at age 35 according to nyda) provides grants of R1000 to R100 000.
No payback, but certain conditions.

If you're doing the admin for the bank app, why not try this too. No hard trying..
Though rather show some months of business running then apply for "growth phase" for full R100k
 
Mila

Mila

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Questions Questions Questions.

I Need to register a PTY. Now this will be for a one man show that will at first not charge vat as the profit will not exceed the maximum allowed.

Should I register a company first and then apply for the loan or can I apply for a loan and ask the bank to assist me with the PTY?
Do I need to go see a Attorney about a power of attorney?

Supporting documents: To register a private company you will complete either a CoR 15.1A (for a standard private company) or a CoR 15.1B (for a customised private company) and a CoR 14.1. The supporting documents required include:

Certified ID copies of all indicated initial directors and incorporators
Certified ID copy of applicant if not the same as one of the indicated initial directors or incorporators
If an incorporator is a juristic person, a power of attorney is required for the representative authorised to incorporate the company and sign all related documents
If another person incorporates the company and signs all related documents on behalf of any of the incorporators and initial directors, a power of attorney and certified ID copy of the person is required
If a name was reserved before filing of incorporation documents, a valid name reservation document is necessary
Fees: The basic filing fee is R175. According to Elsabie Conradie, head: communication, marketing and stakeholder relations for CIPC, a private company can be registered within one day if the company registers without reserving a name first.
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Will I need to register with SARS?

I do not mind doing it on my own, but is it wise to make use of a company that will do the registration for me? Who do you recommend?

Thank you :)
 
I

initroot

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Jul 30, 2011
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Register the company. New law's state that any company on CIPC will automatically be registered with SARS, new single registration is being implemented. (However you have to follow up on this, since it's not always the case, but should be.)

https://www.taxsuite.co.za/ADMIN/siteitems/Documents/SR Letter to Tax Practitioners final.pdf
(See this doc as minor guideline)

If the loan is in the company's name you'll need to have the supporting docs before applying for loan with your bank.
I know Investec also assist with company registrations etc..

Once your name is reserved you'll receive cor9.4 confirming the name is able to be used, or it'll show usually 3 other possible names and some conflicting ones.
Once name reservation is done you can go ahead and complete the rest of the company docs to apply.
Mila said:
Questions Questions Questions.

I Need to register a PTY. Now this will be for a one man show that will at first not charge vat as the profit will not exceed the maximum allowed.

Should I register a company first and then apply for the loan or can I apply for a loan and ask the bank to assist me with the PTY?
Do I need to go see a Attorney about a power of attorney?

Supporting documents: To register a private company you will complete either a CoR 15.1A (for a standard private company) or a CoR 15.1B (for a customised private company) and a CoR 14.1. The supporting documents required include:




Will I need to register with SARS?

I do not mind doing it on my own, but is it wise to make use of a company that will do the registration for me? Who do you recommend?

Thank you :)
Click to expand...
 
Last edited:
G

Greig Whitton

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Mar 12, 2014
Messages
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Mila said:
I Need to register a PTY. Now this will be for a one man show that will at first not charge vat as the profit will not exceed the maximum allowed.
Click to expand...

Even if you are not legally required to register for VAT, you may want to do so anyway. Depending on your market, suppliers who aren't register for VAT may be perceived as less legitimate. Also, if you expect to grow your business and exceed the compulsory VAT registration threshold in the future, then it may be easier familiarising yourself with VAT administration now instead of trying to figure all of it out at the last minute with SARS breathing down your neck.
 
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