Tips to Ease and Streamline Your Business Set-up Process in South Africa
80-90% of new businesses fail within two years of commencement. Out of the remaining 10-20%, 80% fail in the following three years. Only 2-4% of businesses that survive in the first five years are most likely to be successful.
Those odds don’t look so appealing. So what can you do? How can you make sure that your business doesn’t land in that 80-90%?
It all starts by building the right foundation.
A bulletproof financial and legal aspect should be your aim. And here’s how you can make it smooth sailing:-
- Register Your Business Everywhere
From SARS (South African Revenue Service), UIF (Unemployment Insurance Fund) to industry-specific Workman’s compensation and CIPC, register your business on all platforms to ensure there are no loose ends.
- The SARS registration offers you an income tax reference number that can be used while conducting operations or transactions.
- The CIPC registration allows you to register names, appoint or remove directors, file annual returns in the iXBRL format, etc.
- If you have employed people for more than 24 hours/month, you need to register for UIF contributions, which requires you to pay 2% of your worker’s gross salary per month.
- Make Sure You Have Enough Funding
Even small scale businesses require funds to launch, sustain, and pay bills. So make sure you have an infusion of cash to get the ball rolling. There are several ways to obtain requisite funds. However, the trick is to have access to those funds to sustain when times are tough.
So always save money for emergency situations. After all, who knew a pandemic would hit and sway world economies away.
- Get All the Support You Can From Government Grants and Policies
For instance, the Small Enterprise Development Agency (SEDA) in South Africa offers business development and support services to small enterprises. In fact, this agency even helps businesses understand the intricacies of starting their own business, encompassing how to draft a business plan, how to grow it, etc.
There are other policies and departments that can help you, like the Department of Labour, the Department of Trade and Industry (DTI), the Enterprise Investment Programme (EIP), etc.
For more information on obtaining government funding, please follow the below link:-
Follow these practical tips and give your business the right boost.
For more information about CIPC and other filing requirements your business needs to comply with, check out their website @http://www.cipc.co.za/. This website will give you an in-depth understanding of every rule, regulation and compliance you need to keep in mind along with online portals to help with the application process.
Follow the DataTracks blog @ https://www.datatracks.com/za/cipc/blog/ for more information about iXBRL compliance and services to streamline your business.