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TOPIC: Sole Proprietor

Sole Proprietor 11 years 2 months ago #3350

  • Janet
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Hi,

What is the process to start a Sole Proprietor Company - (VAT, Company name etc.)?

Thank you
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Re: Sole Proprietor 11 years 2 months ago #3351

  • athollt
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Hi Janet

You need to register a name with CIPC. You don't have to register for VAT until you reach R1mill in turnover. You don't need to register for Income Tax because you are taxed in your personal capacity.

Have a look at this article for a summary of the differences between a Pty and a Sole Proprietor. businessowl.co.za/business-articles/sole...ship-versus-pty-ltd/
Get your customers to tell all their friends about your business www.ledula.com
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Re: Sole Proprietor 11 years 2 months ago #3352

  • Janet
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very helpful thank you!
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Re: Sole Proprietor 11 years 2 months ago #3353

Janet

Regarding Sole Proprietor vs Pty(Ltd) When you are a sole proprietor, the income of your business are tax in your own name, and you have to register for provisional tax.

If you however have a Pty(Ltd)you can qualify as a SME (Small and medium size entity)the tax consequences are very good, because you only start paying tax when our business taxable income exceeds R63 556 and up to R350 000 your tax will only be 7%.

msbaccounting.co.za also render that services for you at a very reasonable rate
Last Edit: 11 years 2 months ago by Dylan Phelan.
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Re: Sole Proprietor 11 years 2 months ago #3354

  • Janet
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I have read up a little about a Sole Proprietor company and I must admit I am starting to think not to go that route if I look at future growth.

It would actually make more sense to do a PTY from the start but I was thinking of starting off as a Sole Proprietor to see if it will be worth it to register a company. I will be able to move it over to a PTY wont I?
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Re: Sole Proprietor 11 years 2 months ago #3355

Janet
You may start as a sole proprietor, just remember to keep all you invoice and details of money received. You can then at a later stage switch over to a company.
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