My company is registered, now what??

Open a bank account

First things first, you need to open a bank account. SARS will only accept banking details if the account holder is the company. 3rd party bank accounts are only accepted in some cases. To open a bank account, you need to take the company registration documents to the bank, along with the details of all the directors.

Appoint a public officer

When the company is registered, it is assigned with an income tax number by SARS. As soon as the company is registered, a public officer has to be appointed at SARS. This can be anyone of the directors of the company. This is needed in order to create an eFiling profile and submit tax returns.

Register for UIF

As soon as the company has employed a worker who works more than 24 hours a month, the company needs to register for UIF. A monthly UIF return must then be submitted to the deparment of labour, and the deducted UIF be paid over. The employer needs to deduct 1% from the employees salary, and contribute another 1%. UIF is not deducted from employees who works on a commission basis.

Register for PAYE

A company has to register for PAYE, employee tax, as soon as one of the employees earns a salary that is aboth the tax threshold. The threshold is currently R7 632 per month. When the company is registered for PAYE, the employer has to deduct PAYE from the employees and pay it over to SARS. This also means that the company has to submit PAYE recons to SARS twice a year. And also issue the employees with IRP5’s/IT3’s.

Register for COIDA

As soon as the first employee is employed, the company has to register for COIDA, also known as workmen’s compensation with the department of labour. COIDA is an insurance backed by the South African government in the case where an employee is injured whilst on duty. A COIDA return has to be submitted to the department of labour before the 31st of May, every year. Once the return has been submitted and the assessment paid, the department of labour will issue a letter of good standing. This document is needed when applying for tenders or contracts for service delivery.

Register for VAT

A company can register for VAT as soon as the company has had a turnover of more than R50 000 for a month. This is called a volentury registration. As soon as the company had a turnover of more than R1m for 12 consecutive months, it is mandatory to register for VAT. Having a VAT number, makes it more attractive for other companies to do business with you.

Other governing bodies

Remember to check if there is a specific bargaining council for the industry you are trading in. The bargaining council usually requires a monthly payment, which includes a pension fund for the employees, as well as assistance with the labour law. Contact us if you are unsure.