Operating a business may only require an exchange of goods to generate profit but there are advantages to having your business registered.
Moja Chicken’s founder and chief executive Letlhogonolo “Tloks” Motseeng was in the studio with broadcast journalist Rofhiwa Madzena to share the importance of having small enterprises registered in South Africa.
Motseeng shared business knowledge on the business registration process, opening a business account with a bank and filing tax returns for small businesses.
Getting your business registered not only helps the name and legitimacy of the business to be recognised, it also plays a role in getting business funding and suppliers, and it creates more business opportunities.
The podcast described the registration process, stating the necessary steps an aspiring business person needs to follow to have their business officially recognised by the Companies and Intellectual Property Commission (CIPC).
Registration can also be completed online on the CIPC website and can be completed in just four steps: fill in the application form, make payment, upload a certified copy of your identity document, and the certificate will be sent within a week.
The restaurateur said the next step after registering your business is to open a business account, regardless of how small-scale your business may be. This establishes the legitimacy of the business for potential business partners and sponsors.
He also emphasised that the South African Revenue Services (SARS) is not the enemy of black businesses as they do not exploit businesses that are hardly making enough profit to sustain themselves.
Motseeng said it was important for small businesses to collect all their invoices and take them to SARS to check if they were eligible to pay tax, and if they were found to make less than required they were free to continue operations without paying for that year.
A tax certificate should be renewed annually to help businesses stay up to date with their tax returns.