Registering a business in South Africa is simple now than ever before. And how to register a business in South Africa is absolutely up to you. You can do it online or visit the nearest Companies and Intellectual Property Commission (CIPC) branch. So, you need to register your business to make it a distinct legal entity.
There are advantages to registering your business in South Africa. And these include business name protection, tax incentives, financial assistance and business compliance.
There are legal and tax benefits attached to registering your business. The government believes you are a Sole Proprietor when you start generating money from your business. This means you operate the business under your own name. And you file business taxes on your personal tax return. So, you and the business are the same legal entity in the eyes of the law. And that would not be in your best interest.
Benefits of registering a business in South Africa
When you don’t register your business you will not be able to grow. The banks and other third party institutions assist registered small businesses. And they give financial help through bank loans, grants and other financial funding schemes to registered businesses.
So, make sure that you comply with all the rules for any business to run well.
Because registering your business helps you in the event of the unknown situations. These are the things that can be beyond your control. And you need to be sure that you do things the right way.
The world is now talking about COVID-19 and lockdown. So, who would have thought that there would be a virus of this nature. The Covid-19 pandemic has stopped the whole world. This lead to the lockdown for every country. And everyone was required to be in doors in order to avoid the rapid spread of this pandemic. So, almost all the businesses closed. And the ones that open allow few customers.
The SA government contributed R500 billion to all the affected entities. The World Bank and International Monetary Fund (IMF) also contributed to that R500 billion. So, registered businesses got the funding from that.
And this also affected all the other businesses which are trading informally. These businesses include spaza shops, taxi owners and other informal businesses. So, most businesses didn’t benefit from all this R500 Billion government funding.
And what about the looting that took place in South Africa recently? Looters destroyed many businesses and infrastructures. And they damaged the economy. So, the informal businesses will suffer from this, and many will permanently close.
We answer all your other frequently asked questions (FAQs) about registering a new business on our next article.
How to register a small business in South Africa in absolutely up to you and is very simple. You can do it online or visit the nearest Companies and Intellectual Property Commission (CIPC) branch. And you need to register your business to make it a distinct legal entity.
You can get financial help from the banks and other 3rd parties when you have a registered business. And this can also help you in the case of the unknown circumstances.
Have you registered your own business? And how was it, difficult? Please share your experiences on how you started your company.
And please don’t hesitate to contact us if you need help on starting your business.