Small business advice

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MikyMouse

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Hi all,

My SO and I are considering opening a small online shop on the side and I have a few questions. We will be 100% online based and only do this on the side to make some additional money. Due to this we want to keep the costs as low as possible.

1) Do we need to register a business for this? or can we just open shop under a name that we chose without registering? If not what is the cheapest and easiest way to get registration done? I presume that this will have tax implications?

2) Bank acc - again do we need to setup a dedicated acc for this or can we use one of our personal accs? We plan on only needing the acc to receive money from online payments and paying suppliers.
 
My 2c. Separate it from the start, makes your management and tax easier.

1. Register Pty using a company.
2. Open bank account in company name.
 
Register and open account with fnb took me 10 mins ,I did it all online.

Its cost around R200 ,they will register it with the CIPC and send you the documents. You do not have to go any branch or stand in a line.

You then need to take this documents to SARS and register the business for tax ,fnb does not register it for tax. A small company you will be registered for turnover tax .
 
Gtx Gaming said:
Register and open account with fnb took me 10 mins ,I did it all online.

Its cost around R200 ,they will register it with the CIPC and send you the documents. You do not have to go any branch or stand in a line.

You then need to take this documents to SARS and register the business for tax ,fnb does not register it for tax. A small company you will be registered for turnover tax .
Click to expand...

What if you haven't made any money yet? Will you still be liable to pay something over to SARS?
 
Pretty much what was already said, you need to register the business and open banking account in business name, just to keep things simple.

If you in a hurry and not looking to register pty, you can possibly still buy a shelf cc , but then you will be "something something" trading as "insert you business name here"

Keep in mind turnover tax is limited to R1 Million max per year.
 
@Gtx Gaming Do you benefit off this account with eBucks as well?
 
Well then FNB is the obvious choice here for op.

So you register for incontact and other stuff, get all those passive points then transfer.
Win win situation.

Definitely opening 1 tomorrow.
 
Thanks all - I'll have a look at it this afternoon.

If the company has a turnover of less than R35K do I even have to do a tax return? Is this similar to the Income tax threshold where you don't need to submit a return under a certain amount?

My next question is what is the deal with VAT? Am I right in saying that I don't have to register for VAT?
 
so just had a quick look at the FNB option and see that it's R65pm for the PAYU option or R200 for the bundled option. Quite pricey for me just starting out with something tiny on the side. Are there any issues with using a separate personal account to start and then shift to a dedicated business account if things pick up?
 
MikyMouse said:
Thanks all - I'll have a look at it this afternoon.

If the company has a turnover of less than R35K do I even have to do a tax return? Is this similar to the Income tax threshold where you don't need to submit a return under a certain amount?

My next question is what is the deal with VAT? Am I right in saying that I don't have to register for VAT?
Click to expand...


Income tax returns for a company are compulsory.

Vat registration is voluntary.
 
MikyMouse said:
so just had a quick look at the FNB option and see that it's R65pm for the PAYU option or R200 for the bundled option. Quite pricey for me just starting out with something tiny on the side. Are there any issues with using a separate personal account to start and then shift to a dedicated business account if things pick up?
Click to expand...

No issues just need let SARS know which bank account you use ,and keep tabs what money is for business etc.

If you that route you need register the company manually with CIPC ,not sure what the process is .
 
Gtx Gaming said:
Register and open account with fnb took me 10 mins ,I did it all online.

Its cost around R200 ,they will register it with the CIPC and send you the documents. You do not have to go any branch or stand in a line.

You then need to take this documents to SARS and register the business for tax ,fnb does not register it for tax. A small company you will be registered for turnover tax .
Click to expand...

wtf. all online? what sorcery is this?
 
Gtx Gaming said:
No issues just need let SARS know which bank account you use ,and keep tabs what money is for business etc.

If you that route you need register the company manually with CIPC ,not sure what the process is .
Click to expand...

Perfect thanks! I'll do some research into the CIPC and report back.
 
Great Thread. My wife has recently turned our granny flat into a self catering unit and i was thinking of just running it in her name and account but this just makes more sense.
 
whose got the cheapest business account? fnb and standard both at R60 per month at least.
 
Ramcat said:
Great Thread. My wife has recently turned our granny flat into a self catering unit and i was thinking of just running it in her name and account but this just makes more sense.
Click to expand...

I agree. To setup the business at the beginning for only R175 makes a lot of sense (especially if it grows).

A cheap business bank account still remains a hurdle. If only Capitec had one...
 
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