Business Legal Requirements

by Andrew Patricio

To avoid problems in your business, make sure that you abide by the following legal- requirements; if you don't sooner or later you are going to be caught out.
You need to do the following:

The Basics First

· Contact your local South African Revenue Services (SARS) offices to register:
· As a provisional taxpayer. If you are registering a Close Corporation or Company you will also have to register "it" as a taxpayer.
· Value Added Tax (VAT).
· Employees tax.
· Skills development levy.

Note: to register for VAT the SARS might require you to develop a business plan and submit it to their auditors.

www.sars.gov.za

· Metro levies - Contact your local town or city council. These are compulsory levies payable on your sales, drawings, wages and salaries paid. They are payable either monthly or annually depending on the size of the business.
· Department of Labour - Contact the head office in Pretoria to get regional contacts. Once you become an employer, you have to register as such so that you can deduct unemployment insurance (UIF) from your staff's wages.

www.labour.gov.za

· Compensation for Occupational Injuries and Disease Act. All persons who employ one or more employees are required to register and to pay annual assessments to the compensation fund. Contact the compensation commissioner in Pretoria at (012) 319 9111

www.wcomp.gov.za

· Bargaining council - some businesses fall under a council and need to abide by regulations set up by this council. To find out if your business falls under a bargaining council contact your local Department of Labour. There are 59 registered bargaining councils in South Africa.

www.labour.gov.za

· To register your company or close corporation, contact the Registrar of Companies at PO BOX 429 Pretoria Tel: (012) 310 9791, this is usually done by an accountant but you can do it yourself at the fraction of the price.

www.dti.gov.za/sacro

· Consult the Health Department at your local town or city council. If you are going into the food business or you intend opening a nursery school, you need to get the health department to inspect your premises.
· Signage - You need to contact your Local Town or City Council about erecting signs and also about any regulations that apply specifically to your area. You are not allowed to erect signage without the approval of your local council.
· Contact SAMRO - South African Music Rights Organisation (011) 489 5000. Every business that plays music for the enjoyment of their staff and customers needs to pay an annual levy to SAMRO.
· To obtain a liquor license, contact your provincial liquor board or phone Pretoria (012) 3109791. It is a good idea to use the services of a qualified attorney to do this.
· If you are going to import or export or require information on import and export you need to contact the Department of Trade and Industry (DTI).

www.dti.gov.za

· Contact the SA Numbering Association (011) 787 4387 if you require barcodes for your products.
· To register a patent or trademark contact the Registrar of Patents, Designs, Trade Marks and Copyright (012) 310 9791.
· Speak to your local town or city council to see if you require special permission to operate your business in the area. If you are going to operate your business from home, you will need to obtain permission from your local city or town council as well as your neighbours.
· You need to keep a copy of the Basic Conditions of Employment Act on your premises. This is available from the Department of Labour.

www.labour.gov.za

· The Wage Determination Act sets out the minimum wage you are allowed to pay your employees. This is obtainable from the Chamber of Commerce or the government printer.

© Reproduced with kind permission from Andrew Patricio of smallbusinessonline.

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