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Registrations

Dealing with SARS is quite possibly the most frustrating experience of all government departments, and the reason is quite simple. Each consultant is measured on the number of clients seen (not served), it is therefore their mission to find that which you may not have, and to send you away as quickly as possible. In fact the problem is so acute that they will not attend to a second query you may have, instead sending you to the back of the line. It is therefore imperative that you have the required docs.

We facilitate all company and statutory registrations;

1. Company Registrations

We require the following for all proposed Directors;

  • certified copy of your Identity Document,
  • proof of address,
  • and your choice of four business names.

The first available business name will be reserved, thereafter the business can be Incorporated and registered with the Companies Commission of South Africa (CIPC).

It is important to distinguish between Companies and Intellectual Property Commission (CIPC) registration and registration with the South African Revenue Service (SARS);

  • CIPC registers Companies and Co-operatives. It is not mandatory for all businesses to formalise by registering with the CIPC. For some businesses, such as informal businesses and sole proprietors, there may very well not be sufficient benefits. However, businesses that wish to do business with government and the formal sector, or that wish to access certain types of government support, are generally expected to be registered with CIPC. For these businesses, there may also be tax benefits to registration, for example; registered businesses have a lower tax rate than individuals.
  • Regardless of whether you are registered with CIPC, you will still have to be registered with the SARS and will still be liable for tax if your turnover exceeds the prescribed threshold.Total cost including Name Reservations, Share Certificates, Share Register and Standard Memorandum of Incorporation is R2,995.00 (excl. vat).

2. Value Added Tax (VAT) Registration

When should I register for VAT is a question often asked by small and even medium sized businesses. According to the South African Revenue Service (SARS) a company must be registered for VAT if it has, or is likely to earn an income of more than R1 million for 12 consecutive months. VAT registration is voluntary for companies with a turnover of more than R50,000 for 12 consecutive months. A small business which is registered as a micro business under the 6th Schedule of the Income Tax Act may also register for VAT, and may elect to submit returns and payments every four months, ending on the last day of June, October and February.

The VAT application must be submitted in person by the individual, partner, representative vendor or registered tax practitioner. Registrations are classified as COMPULSORY if the annual turnover exceeds the threshold of R1million & VOLUNTARY, if the turnover is at least R50,000 but below the annual threshold.

FYI – Vat registration may only be applied for in respect of a tender, once the tender has been awarded.

VAT Registration is an onerous and lengthy process, and the following documentation is essential;

  • company income tax number,
  • original certified copies of company registration document,
  • original certified copies of identity documents of director/s,
  • original signed and stamped letter from bank confirming business bank details (no internet printouts),
  • three months original bank statements stamped by the bank (no internet printouts),
  • original certified copy of identity documents of the company representative,
  • recent original business municipal account, not older than three months,
  • If the property is leased, an original certified copy of the lease agreement,
  • recent original residential municipal account of the company representative, not older than three months,
  • financial documents to support turnover declarations per part four of the application form to determine taxable supplies (no cash flow projections),
  • original letter appointing tax practitioner; to submit application on the company’s behalf,
  • description of business, physical and postal address, contact numbers.

3. Pay As You Earn (PAYE)

The PAYE application must be submitted in person by the individual, partner, representative vendor or registered tax practitioner. All businesses employing one or more staff or salaried director must register for PAYE. The PAYE, UIF, and SDL must be paid over to SARS monthly.

In order for us to register your company for PAYE, the following documentation is required by SARS;

  • company income tax number,
  • original certified copies of registration document (COR14.1, COR14.1A, COR14.3, COR15.1A),
  • original certified copies of identity documents of the two main directors,
  • original signed and stamped letter from bank confirming business bank details (no internet printouts),
  • original certified copy of identity documents of the representative employer,
  • recent original business municipal account, not older than three months,
  • if the property is leased, an original certified copy of the lease agreement,
  • recent original residential municipal account of the Individual or representative employer (not older than three months),
  • completed and signed confirmation of residential address form CRA01 on SARS website,
  • estimated gross total salaries for the next 12 months,
  • original letter appointing tax practitioner; to submit application on the corporation’s behalf, and
  • description of business, physical and postal address, contact numbers.

4. Skills Development Levy (SDL)

An employer is obliged to register for SDL purposes unless there are reasonable grounds for believing that the total leviable amount paid or payable by the employer to all its employees during the following 12 month period will not exceed R 500,000.

SDL is levied at 1% of salaries paid, and the cost thereof is carried completely by the employer. Registration, declaration and payment of SDL is done in conjunction with PAYE.


5. Unemployment Insurance Fund (UIF)

The Unemployment Insurance Fund (UIF) gives short-term relief to workers when they become unemployed or are unable to work because of maternity / adoption leave, or illness. It also provides relief to the dependants of a deceased contributor. An employer who is obliged to register for employees tax purposes is also obliged to register for UIF contribution purposes at SARS and the Department of Labour.

UIF is levied at 2%, and the cost thereof is carried equally between employer and employee.

Registration, declaration and payment of UIF is done in conjunction with PAYE at SARS. The following documentation to register for UIF is required;

  • description of business, physical and postal address, contact numbers,
  • original certified copies of registration document (COR14.1, COR14.1A, COR14.3, COR15.1A),
  • original certified copies of identity documents of the two main directors,
  • PAYE registration number,
  • identity number, name and Surname of each employee to be registered with the Department of Labour, and
  • hours and gross income of each employee to be registered.

6. Workmens’ Compensation

The South African Government has set up a special fund to compensate employees for injuries or diseases resulting from work. Any employer that has 1 or more employees must register with the Compensation Fund and pay the annual assessment fees.

The following documentation to register for WC is required;

  • company income tax number,
  • original certified copies of registration document (COR14.1, COR14.1A, COR14.3, COR15.1A),
  • original certified copies of identity documents of the two main directors, and
  • estimated number of employees and their salaries (up to the contributable amount) to be paid during the next assessment period.