Private Company Basic Compliance
So now you own a business, a registered business, congratulations!
What do you need to know about the decision you have just made? The Companies and Intellectual Property Commission popularly known as CIPC and the South African Revenue Service expect you to file a few returns in order to run a compliant entity.
CIPC:
First step is to register your company on www.cipc.co.za and fill in all the applicable details. The certificate generated called a COR 14.3 tells you when your financial year end is and your anniversary date. What this means is that once your financial year (not necessarily the same as a calendar year) is over, you need to declare how much the company generated. Depending on your revenue and profit level, you may need to submit a Financial Accountability Supplement (FAS) or Annual Financial Statement (AFS). If the company does not require an audit, a FAS should be submitted with your annual return.
SARS:
There are more returns required by this entity, two provisional tax returns and one annual return (assuming this is the only tax type registered for). A provisional tax return (IRP6) is submitted 6 months into the financial year and again on the last day of the financial year. These returns are based on financial projections that are prepared by the company (this is where budgeting and planning comes in). The last return is called an Income Tax Return (ITR14). This return is more technical and requires a sound knowledge of tax and accounting principles based on the company's performance for the full financial year.
Submitting these 4 returns on time annually will ensure your company is compliant and good to operate. Other tax types may be registered for and each has it's own tax implications, speak to your accountant first before opting for those taxes and they can advise you on what's best for your company.
Congratulations on your new company and welcome to the economy!