Is your business compliant?
What do you think of when it comes to compliance? Quite sure you think about SARS right?
Did you know that there are other regulations that your business must comply with?
Some of the regulations apply if you have a registered business and some apply to you even if you are running your business as a sole proprietor!
Why is it necessary to be compliant?
- It is your duty by virtue of being a corporate citizen in South Africa
- Complying with regulations indirectly ensures that you are being fair in your employment and business relationships
- It is becoming necessary to be compliant to do business especially with government and related agencies.
What are the consequences of non-compliance?
- You won’t be able to do business with the government and related agencies.
- Your business incurs unnecessary costs in penalties and interest and can result in your business being shutdown in extreme cases.
- In the day and age of social media, your business’s non-compliance can be easily advertised to the world by an unhappy customer, a mistreated employee or even members of the public.
You must register on the Central Supplier Database (CSD) which automatically reads your business’s compliance from SARS and CIPC currently.
Read more on registration on the Central Supplier Database (CSD) Welcome – Central Supplier Database Application (csd.gov.za)
We’ve listed a few of the general regulations and regulators in South Africa.
1. Companies and Intellectual Property Commission (CIPC)
This Act is regulated by the CIPC and is is relevant to all companies registered as CC and (Pty) Ltd.
The relevant Act: The Companies Act No. 71 of 2008
Main points for compliance are:
- How company records are to be maintained
- The submission of an annual return of earnings
2. South African Revenue Services (SARS)
These Acts are regulated by SARS are relevant to all business and sole proprietors.
The relevant Act: Income Tax Act No. 58 1962
Main points for compliance are the submission of:
- Annual income tax returns
- Bi-annual provisional tax returns
- PAYE declarations by the employer
- Bi-annual employers reconciliation returns
The relevant Act: The Value-Added Tax Act No. 89 of 1991 (VAT)
Main points for compliance are:
- The timely registration for VAT
- Accurate preparation and submission of VAT returns
3. Department of Labour
These Acts are predominantly regulated by the Department of Labour and are relevant to all business and sole proprietors who employ staff in their business:
- Labour Relations Act
- Basic Conditions of Employment Act
- Workmen’s Compensation Act
- Occupational Health and Safety Act
- Compensation for Occupational Injuries and Diseases Act
- Unemployment Insurance Act
- Employment Equity Act
- Employment Tax Incentive Act
There are specific regulations that a business must comply with depending on the industry they operate in; for example, a mining company has specific regulations and as do accountants.
How can we help?
We partner with our clients to help them navigate the maze of regulations and help them assess the risks involved and ways in which you can mitigate those risks.
Our advice to you is based on your business and we have tailor made packages to suit every size of business.
