I once started my own company and man was it a mission. Well… it would have been a piece of cake had I known what I’m about to tell you.
Step 1: The first and most important step in establishing your own company is to register your company. I started with my bank account name and later found that I couldn’t register the same company name. I had to go back into the bank to change the account name to match my company name. Needless to say, it was a waste of time. So it’s important to establish a registered company name before you create a bank account for it.
Step 2: Once you’ve registered an available name through CIPC or through a third party company such as Shelf Company Warehouse, go to the bank and create an account in the same name as your newly registered company name.
Step 3: Go to SARS and register for e-filling. This has to be the longest and most daunting step but if you go prepared it will be a lot easier than it was for me. You’ll need the following documents before you go –
There will be forms you’ll need to complete at SARS but they don’t take long to fill in.
Step 4: Once you’ve registered your company with SARS, you’ll be given a tax number. Make sure to keep this tax number safe and readily available as you’ll need it. You’re going to need to register all employees earning above R70 700 per annum for PAYE (including yourself if you’re working in the company and earning above the prescribed amount).
Step 5: Every year you’ll have to submit annual returns for your company to CIPC. This is a nominal amount of about R100 to make sure your company isn’t deregistered. It is VERY important so don’t miss it. You’ll receive an email or SMS to notify you if your annual returns to CIPC are due. Simply go to their website (www.cipc.co.za) and follow this training manual.
Step 6: Find a reliable, honest and affordable tax practitioner. You’ll definitely need someone to help compile your companies annual financial statements and you’ll probably need them to help submit your provisional tax returns too. I would take some time finding the right person/company for the job.
If you follow these steps you’ll experience smooth sailing from the beginning (unlike my experience).
I wish you the best of luck!