|Company||A New Company, a commercial business, is registered with the CIPC (Companies and Intellectual Property Commissioner).|
|Trust||An arrangement whereby a person (a trustee) holds assets, property etc. as its nominal owner for the good of one or more beneficiaries: ‘a trust was set up’. The benefit of a Trust is that those assets, income etc. will not form part of your estate once you pass away. The ideal is that there is company with trustees each having a share in the company.|
|PAYE (Employee Tax)||A Business must be registered with SARS (South African Revenue Service) for PAYE and UIF if a business has employees who is tax payers, in other words, employees who must pay tax according to the relevant legislation.|
|UIF (Unemployment Insurance Fund)||A Business must be registered with the Department of Labour for UIF, all employees pay UIF contributions monthly and all employers pay an equal UIF contribution on a monthly basis.|
|VAT (Value Added Tax)||This is a type of Tax payable to SARS. VAT is an indirect tax on the consumption of goods and services in the economy. Revenue is raised for government by requiring certain businesses to register and to charge VAT on the taxable supplies of goods and services. These businesses become vendors that act as the agent for government in collecting the VAT.
VAT is charged at each stage of the production and distribution process and it is proportional to the price charged for the goods and services.
VAT is presently levied at the standard rate of 14% on the supply of most goods and services and on the importation of goods. The VAT on the importation of goods is collected by customs. There is a limited range of goods and services which are subject to VAT at the zero rate or are exempt from VAT.
VAT registrations can realise in two different ways, Voluntary or Mandatory.
Voluntary: A Business must be trading for more than three (3) months to qualify and they must earn an income of R50 000.00 or more annually.
Mandatory: If a business has a turnover of more than R1 000 000.00 annually, they must register for VAT.
|Compensation Commissioner||If a business employs workers they must register with the Compensation Commissioner to have access to the Workman’s Compensation Fund. This Fund and the office of the Commissioner is regulated by the COID Act (Compensation for Occupational Injuries and Diseases Act No 130 of 1993). The aim of the COID Act is to provide for compensation in the case of disablement caused by occupational injuries and diseases, sustained or contracted by employees in the course of their employment, or death resulting from such injuries and diseases; and to provide for matters connected therewith.|
|Tax Clearance Certificate||A Tax Clearance Certificate is a document requested from and issued by SARS, this document confirms that all types of taxation for which the entity is registers is submitted and paid up to date.|
|BBBEE||BBBEE is an acronym it stands for Broad – Based Black Economic Empowerment. There is legislation called Broad-Based Black Economic Empowerment Act No. 53 of 2003, as well as some amendments to that Act which informs and directs the implementation thereof for businesses in South Africa. BBBEE is a form of Economic Empowerment initiated by the South African government in response to criticism against Narrow Based Empowerment instituted in the country during 2003/2004.|
|IT||IT stands for Information Technology it is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data, often in the context of a business or other enterprise.|
|Accounting||Accounting is the process or work of keeping financial accounts for a specific entity, from this one can draw various reports and conclusions.|
|Hardware||Hardware refers to the machines, wiring, and other physical components of a computer or other electronic system.|
|Software||Software refers to the programs and other operating information used by a computer.|