Most prospective entrepreneur are overwhelmed when they start a small business in South Africa. So many things to learn, think about and look out for. When you take that brave step to be an entrepreneur, and potentially build up a small business or even a large organisation, one of the first things to do is review your daily habits.
In very short, a few ideas to build in your daily habits, as an entrepreneur.
- Wake up every morning at 5am and have your own time in solitude.
During this time …
1. Read educational and motivational books of other entrepreneurs
2. Use your journal to practise deliberate gratitude (of the simple things that we tend forget)
3. Write down your goals for the week, month, year and review it frequently.
As for operations, a few ideas below when you start a small business in South Africa.
1. Decide on your name
Keep your name short. It need to be stated on everything. People must be able to remember it.
Importantly, do a name reservation with CIPC and make sure your register your chosen name.
Do not operate in a shelf company with a trading as name. Apart from the companies act that prohibits it, it sure does look messy.
Contact us below for assistance with your name reservation and company registration.
2. What company structure will you use?
My initial meeting with client always have this important question in. It is important to plan today for what success awaits you. If you have a tolerance of risk your company structure may be different and require more attention than normal. Merely creation a company will not take any away any risk from your personal estate.
Contact us below if you need a consultation regarding your company structure.
3. Opening of the bank account
Open a current account in the name of the company. Make sure this gets done correctly. Ask your accountant to assist if need be. If you trade in a wrong bank account, you will find difficulty when applying for an overdraft and other credit applications. I always make sure to know my banker closely.
- Make sure every employee has a contact in place.
- Register your company with the labour department for UIF and workmen's compensation.
- Register your company for PAYE with SARS.
- Every employee must receive a payslip every week, fortnight or month.
- On the 7th of the following month, the total UIF en PAYE of all employees needs to be paid to SARS.
Contact us for assistant of your payroll needs and SARS submissions.
5. Tenders or other similar contract application
When you apply for tenders or similar applications, it is important to keep all your accounting and tax compliances up to date.
The following things are important to keep compliant:
- Tax clearance certificate from SARS
- Letter of good standing from Workmen's compensation (WCA)
- Monthly accounting processing of financial information
- BEE affidavit or QSE certificate.
I hope this article gave your some ideas or insights when you start your small business in South Africa.
We are currently members of the South African Institute of Tax Practitioners & Institute of Accounting & Commerce (The principle director JN Basson are registered with practice number AO652993).
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