Updated: Mar 22
Article by Ruan Lerm
As a Wealth Master, you always need to be ready for new opportunities, and with new opportunities comes the need for the correct structures. While we always advocate for a water-tight TTS Trust Structure, you will sometimes be required to set up a company, depending on your portfolio and investments. This article will give you an overview of what you need to do in a simplified manner.
Should I register my company?
Most Entrepreneurs and Self-Employed business owners start by trading in their name as Sole Proprietors. At some point, it will start making more sense to formally register a company, as it comes with certain legal benefits.
One benefit is asset protection, which ensures personal assets' safety in a lawsuit. It can also make it easier to apply for and receive funding. Destinata Business Management provides business registration services and will be with you every step of the way.
What type of business should you register?
Before you can determine this, you need to ask three questions:
Is your company for-profit or not?
How many Founders are in the business?
How many people will have control over the business?
A non-profit company gets incorporated for public benefit, and the business will not distribute the income and property to its incorporators or members.
On the other hand, for-profit companies get categorised as companies without restrictions on the transfer of their shares and income. There are four distinct forms of a for-profit company, namely:
A private company
A public company
A state-owned company
A personal liability company.
Where and how do I register my company?
In South Africa, all businesses will register with the Companies and Intellectual Property Commission (CIPC). After you've determined which type of company you would like to register, you will need the following documents:
Notice of incorporation
Memorandum of incorporation
Notice of Incorporation
Type of Company
A list of four names to be checked by the Commission
The reserved name and reservation number
The Head office registered address
Number of Directors
Memorandum of Incorporation
Details of Founders
Number of Directors or alternate Directors in the business
How much share capital exists
Certified copies of your ID and all indicated Directors and Incorporators
Proof of address for all of the Directors or Members
How to make sure I get the company name I want?
Your preferred company name should be unique for two reasons, if someone else took the name, then CIPC won't accept it, and you want to be discovered easily online without competing with several other businesses sharing your name. Our team can assist you in checking whether your desired name is already in use.
Registering your business with SARS
You need to register your business with SARS and appoint a representative within 60 business days of starting your business. You will see an Income Tax number on your disclosure documents received from CIPC. You should submit this tax number with the following documents on the sars.gov.za website, with the following documents:
Company disclosure documents and income tax number
Representative appointment letter
Representative details and personal income tax number
Representative proof of address
You will also need to submit an image taken on the day the request is submitted, clearly showing the individual in question holding up a copy of the Identity Document and a note that reads "Update my details."
If you are a paying member of the Wealth Masters Club, you have access to our experts who specialise in creating and administering new businesses. If you want assistance, click on the link below, share more details of your query, and our team will get in touch to assist you.
Here is your unique link to allow your members to register for our ongoing webinar: