Registering your small business as a private company can be achieved via CIPCs (Company and Intellectual Property Commission) formal application process.
This of course is one of the basic qualifying criteria for the SBC tax benefits.
As a start-up you will also need to engage your accountant and furnish details thereof in terms of the company registration process.
Registration can be made via CIPCs convenient online or electronic filing system as well as manually. Turnaround time is usually estimated at 21 days, provided your “company name” has been reserved already.
This is tentative and allowance should always be made for unforeseen delays.
Once completed you will receive your registration certificate from CIPC and this coupled with the other qualifying requirements means that you will be able to enjoy the above preferential tax rates!
The tax savings are quite significant, because, as a registered private company, you will pay a maximum of 28% tax as compared to a maximum of 40% as a Sole Proprietor or individual.
It is therefore highly recommended that you maximise on the applicable tax incentives, and ensure your qualifying criteria are adequately met. These and other savings will surely take you one step closer to your goal of creating a sustainable business!