How To Register Your Tombstone Business
Registering your tombstone business is not difficult to do. The National Small Business Act of 1996 divides small business into small, medium and Micro Enterprises. A Tombstone Manufacturer will usually be a small or micro enterprise depending on the amount of employees and annual turnover that the business generates per year.
Usually a successful Tombstone Manufacturer will employ ± 5 full time paid employees but generally not more than ten, with a turnover of about a million or more a year. Obviously having more than one branch will increase the turnover and employees employed. You will have to make a decision about which business structure is the best for your tombstone business and situation. Choose the best solution:
Easy to set up, with very little formality, laws or regulations. This is the easiest form of business.
You will be responsible for the debts of the business. In other words, if the business does not succeed, your personal assets such as your house, car, etc can be attached by the sheriff of the court and sold, so that the people that you owe money can be paid.
You will make all the business decisions.
You will have to supply all the finances to start the business, but all the profit is yours. Unfortunately the knowledge base and skills of the business is smaller. The business can be limited in its growth potential, one person cannot be everywhere at the same time.
This business is also easy to set up with minimal rules and regulations.
Responsibility for the running of the business is shared by the partners.
All partners are responsible for the liabilities and debt of the partnership according to their share of the business. All partners share in the profit of the business.
Every partner brings their own experience, expertise and finance to the business which is beneficial to the business.
The negative can be disagreement between partners.
(If you can get hold of a shelved CC or have an existing cc)
Relatively quick and inexpensive to register.
The debts and liabilities are the responsibility of the Close Corporation and not the owners of the business.
If the business goes bankrupt, only the assets of the close corporation will be sold to pay debts. The owners of the close corporation will not lose their personal assets.
Because of point 2 it is not easy to get finance for the business unless you stand surety for the debt.
A Close Corporation on the other hand is seen by suppliers and customers to be more credible because there are strict accounting regulations for this type of business.
The Department of Trade and Industry Tel: 0861 843 384 can be contacted for information on registering the above. CIPRO does the registration.
Do keep in mind that financial incentives and loans are usually reserved for registered companies.
You will have to visit the Department of Labour and the Receiver of Revenue with regard to employees, U.I.F, Vat and income tax.
Receiver of Revenue. All your business expenses can be deducted before you pay tax. This means the vehicle, office, tools, workshop, salaries, equipment, water and electricity, petrol, and many more. Talk to a good bookkeeper or accountant.
VAT, if your turnover will be more than the limit provided by SARS. If under that amount, you can decide if you want to register or not.
U.I.F. If you employ people, whether temporary or permanent. You will contribute 1% and the employee contributes 1%. When the employee becomes unemployed, the U.I.F pays a monthly sum to the employee.
Regional Council Services, find info at Municipality.
Workmen’s Compensation. If an employee gets hurt during work time, he/she get 75% of the salary paid by Workmen’s Compensation.
P.A.Y.E., if salaries are paid. See receiver of revenue.
Visit your local branch of the Labour department to acquire rules of Basic Conditions of employment.