High unemployment rates are driving new start-ups in South Africa.These are the questions you should be asking if you want to start your own business.
Marais shares some of the most common mistakes a start-up can make and the questions you should be asking if you intend to start your own business. Company registration guarantees several legal benefits, one of which is asset protection."If a company is legally registered, others can’t claim your business name as their own, which is not the case if unregistered".
It isn’t necessary to register for VAT right away. In fact, VAT registration is voluntary if income for a 12-month period exceeds R50,000. However, VAT registration is compulsory if income for a 12-month period exceeds R1 million. With contractors, however, no PAYE submissions to SARS are necessary and you are not liable for workman’s compensation; contractors are helpful in the short term; and contractors allow for savings during slower seasons. Going into business blindly can be daunting, invariably go-getters end up in a sticky red-tape scenario, says Chartered Accountant, Riki Marais.