Starting a business in south Africa can be very rewarding especially when you have done your homework before getting started as there are many industries that may seem as an easy way of making money however the registration process and compliance on the hand cost an arm and a leg.let’s explore some of the business or industries with affordable and easy compliance that you can start and run with in just simple steps.
South african government requires that all business be registered with Companies and Intellectual Property Commission also known as Cipc. A name reservation fee of R50 is required, As well as the Registration fee Of R125 Leading To the total cost of R175.
What is required by Cipc to register your Business?Official Passport documents or ID documents
4 Proposed Names for your Company
Confirmation of Residential Address
Business Address
Email Address and Cellphone Numbers
South African government also allows people to start their business without the Proper or formal registrations However these types of business are deemed to be informal business and can only operate in some certain industries with exclusions to high regulated industries such as health care, finances, and others regulated businesses that may also require special licenses , these businesses in such industries usually have a higher margin of profit as well.Filling Business annual returns with CIPC.
Starting A business can be a very challenging task especially when you don’t have much information about the industry you have to choose, this is why most business advisor advice entrepreneurs to conduct deep research about the nature of the business prior the formal business registration with CIPC.
Registering your business with CIPC means You have done all the necessary research and have a better understanding of the industries or the business you are running with and therefore must be ready to Execute business tasks and implementation process.
All registered business are required to file their annual tax returns for a cost of R100 per business however if business files annual returns later than the provided date a penalty fee of R50 will also be added on fee, And If Cipc Annual Returns a not filed for more than 2 consecutive Months the business will be deemed not operational and Will be prompted to deregistration process.
Deregistered business can also be reinstated with cipc provided that business pays outstanding amount with reinstatement fee of R250,The Process of reinstating a deregistered business can overwhelming as the business Can either be reinstated through a court order or Through Applying to Cipc also specifying reasons why the business has to be reinstated, this process usually requires that there is proof that business is running and has some asset attached to it.
In conclusion, it is always best to only register business when all necessary information has been acquired and the business is ready to run in order to avoid making unnecessary debt and it is very important to check with regulating bodies and suppliers if there’s actually a need for formal registrations.