SETTING UP A COMPANY IN SOUTH AFRICA

In terms of the Companies Act, 2008, one can register a South African company with or without a company name. When a company is registered without a reserved name, the registration number automatically becomes the company name. Setting up a company has some responsibilities that come with it. This includes filing annual returns and an annual fee, irrespective of whether the business is trading or not.

Our firm is now 17 years strong, and has a well-placed team to provide a holistic solution, from initial consultation where we can design a roadmap for a correct and compliant company setup, right through to filing annual returns and offering full accounting services.

COMPANY CATEGORIES CONTACT US

CATEGORIES OF COMPANIES

Private Company
PRIVATE COMPANY
PUBLIC COMPANY
NON-PROFIT COMPANY
Personal Liability Company
PERSONAL LIABILITY COMPANY
State Owned Company
STATE OWNED COMPANY
SEE FULL CATEGORY LIST

TAX CONSIDERATIONS FOR A SOUTH AFRICAN COMPANY

Entrepreneurs and/or Multi-national corporates who want to start a business need to be aware of the tax obligations of running a business whether it be in the form of a legal entity on in a personal capacity. You are required to register your business by filling in an IT77 form within 60 days after commencement with your local SARS office to obtain an income tax reference number.

A close corporation or private company must be registered with the Registrar of Companies and Close Corporations to obtain a business reference number. Your private company will then be registered automatically as a taxpayer.

Depending on factors such as turnover, payroll amounts, whether you are involved in imports and exports etc. you could also be liable to register for other taxes, duties, levies and contributions.

These are the taxes all companies are required to pay:

  • Provisional tax
  • Employees’ tax
  • Directors’ remuneration

A sole proprietor or each partner – in the case of a partnership – is subject to income tax on their taxable income. Income tax is levied at progressive rates ranging from 18 – 40%.

A company or close corporation pays 28% income tax on its taxable income for the tax year and 10% secondary tax on companies on the nett amount of dividends declared.

We encourage you to reach out to us for a personal consultation where we can address your company needs holistically and advise on the best structure for you and your business.

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VALUE ADDED TAX (VAT) REGISTRATIONS

VAT is an indirect tax on the consumption of goods and services in the economy. It is mandatory for a business to register for VAT if the total value of taxable supplies made in any consecutive twelve-month period exceeded or is likely to exceed R1 million. VAT is levied at a standard rate of 15% on the supply of goods and services by registered vendors.

In order to register for VAT, an applicant must register on the e-Filing website as well as submit the VAT 101 application in person at a SARS branch near the location of the company. Applications will only be submitted by post if the applicants are geographically far from the SARS branch or due to a disability that prevents the applicant from appearing in person.

As part of your company setup package, we offer VAT registrations where your company falls into this category. Should you wish to proceed with our Accounting service, we can also assist with VAT submissions and returns with SARS.

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