8 minute read
Compliance makes good business sense
from Spotong Issue 32
by 3S Media
Your SME compliance checklist
It’s a reality that high unemployment rates are driving new start-ups in South Africa. But while entrepreneurship is rewarding, there are numerous legal issues and red tape that comes with running your own business.
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The term “business compliance” refers to a company obeying all the regulations and laws on how they manage the business, their staff, and the treatment toward their consumers. The concept behind compliance is to ensure that businesses act responsibly. Being compliant is not only necessary but also makes good business sense. Consumers are more likely to do business with those who follow and obey the law. Let’s take a look at a legal and regulatory checklist to consider to make sure you get compliance issues right from the start.
Get expert advice
Meeting with a credible professional allows you to ask any questions you may have before getting started with your business. Questions, especially legal concerns pertaining to the industry you are focusing on, should be addressed sooner rather than later. If you iron out the big issues from the outset, you can avoid legal disputes or possibly getting into trouble with SARS in the future.
Register your business
This is the first step in creating a formal business of your own. Company registration guarantees several legal benefits, one of which is asset protection, which ensures keeping your personal assets safe in case of a lawsuit against your company. If a company is legally registered, others can’t claim your business name as their own. Another advantage of registering your business is that funding is more easily acquired. Banks will not give business loans to unregistered companies. You can register your company online with the Companies and Intellectual Property Commission (CIPC).
Open a company bank account
This is a SARS requirement. A company bank account ensures separation of business and personal transactions for thorough bookkeeping.
Get your tax number
You will need a business income tax number from SARS and if you expect your annual turnover to exceed R1-million or wish to claim VAT back on your expenses, you need to register for VAT. There are several taxes and returns to consider: • Annual returns: Only necessary for companies and CCs, submitted to CIPC; • VAT: Either by oneself or a professional service provider such as an accountant, by means of a
VAT201 form; • PAYE, UIF & SDL: Only if workers are employees of the business, by means of an EMP201 form; • Provisional tax: Twice a year, after six months and at year-end (advance payment towards yearly income tax); • Income Tax @ 28% of taxable income (28% for companies; individuals according to tax scale):
Due annually, one year after financial year-end; • Dividends: A dividend tax of 20% paid to SARS when declaring dividends. This will likely not happen in the early stages of a business, as most businesses prefer to spend surplus funds on assets and growth.
Labour law
If you will be employing people, you must know what the Basic Conditions of Employment Act says about: • Working hours • Workplace conditions • Overtime • National Minimum Wage • Discipline • Leave • Health and safety regulations The Occupational Health and Safety Act gives workers a range of rights in terms of health and safety in the workplace. It is important that you familiarise yourself with the guidelines around aspects of workplace safety. These include first aid, protective clothing, machinery, ladders, firefighting equipment, ventilation, lighting, temperature, noise and asbestos.
Consumer protection laws
The Consumer Protection Act (CPA) was introduced to strengthen consumer rights. The CPA aims to level the playing field between consumers and companies. The Act includes: • Cooling-off periods after a consumer signs a contract with a supplier who approached them via direct marketing • Disclosure of information in plain, understandable language • Returns, refunds and repairs of products under warranty • A consumer’s right to safe, quality products and services • Small businesses with a turnover below R2-million are classified as consumers under the Act.
Protection of Personal Information (PoPI)
If you are running any sort of business, you will probably be collecting personal information such as e-mail address, ID numbers and banking details from your customers and employees. The South African government has introduced privacy legislation such as the PoPI Act to protect people’s personal data. Every business is obligated to take reasonable steps to safeguard ALL personal data they have collected.
EMPOWERS PEOPLE TO CHANGE THEIR LIVES
Over the past 21 years, we’ve seen how tough it is in the townships of South Africa. We’ve seen how many parents struggle to make ends meet, how many children go to bed hungry, and how many tears are spilled over lost opportunities… We have seen how so many people have given up hope.
On the other side, we’ve also had the humbling privilege to see how many people stood up and changed their lives for the best. People who took ownership of the Botle Buhle Brands (BBB) opportunity and turned around their fate. Putting food on
MIRANDA MACHEDI
Distributor of MIRACLE DISTRIBUTION
Miranda Machedi is a mother of two boys and a successful BBB Distributor who joined BBB in 2008 as a Consultant. She was promoted as a Manager some years later and became a Distributor in 2019.
Why I chose BBB as a career path
“I was introduced to the BBB business by my late mother who was a Manager here at BBB. She used to tell me about the business, but at that time I wanted nothing to do with the business. However, I was inspired by how much money my mother made at BBB and because I loved the fine things in life I decided to join.”
A bit about the BBB Journey so far
“Before joining BBB, life was just okay, but that’s not what I wanted. I wanted more. I wanted the good life. When my mother passed away, I became a Manager, and I aspired to be great in this business. I am not a coward; I do not fear hard work, so that’s what I did; I worked hard. With the help of my Distributor and fellow Managers, I learnt more about the business. I enquired from other successful Managers how they do it, and I never sat on my potential. Do not sit on your potential, work towards it. I had the goal to be great in business and financially and I stuck to prayer and strategies.”
How my life changed for the best
“My hard work started to pay off, and I was able to buy myself a van for my business, I bought myself a Polo, a truck for my business, a Mazda, and I built a house for my dad. Today I live the life I choose to live, because I can. I can travel as much as I want, my children’s school fees are always paid up on the first day of school, and my life is stress-free.” their tables, empowering their kids with education, lending helping hands to their communities and changing not only their own lives, but also the lives of those around them for the best. Botle Buhle Brands is a trusted direct selling company, empowering people to start their own businesses through selling our world-class quality products. Miranda Machedi and Sombu Lukhele are two BBB Distributors who share their life stories, which could’ve easily been stories also ending without hope, but instead, they are empowered and able to share their hope and reasons for success with you.
SOMBU LUKHELE
Distributor of SOMBULUKO DISTRIBUTORS
Sombu Lukhele is a 57-year-old mother, wife and entrepreneur who joined Botle Buhle Brands at a time when things were not going well in her life. Sombu is a hard working go-getter who believes in going after what she wants and fighting to get it. In 2007, she was promoted as a Distributor and has since grown to be one of the top-achieving BBB Distributors.
Why I chose BBB as a career path
“I was introduced to the BBB business by a great woman who is now also a Distributor here at BBB. I was inspired by how much the business had changed her life and how highly she spoke of it. You do not need money to join, you just need determination and hard work, have a goal and vision.”
A bit about the BBB Journey so far
“Botle Buhle Brands is not a business for the lazy; this business requires you to work hard and always be on your toes. You need to be hungry for success and believe in changing people’s lives for the best.”
How my life changed for the best
“Through Botle Buhle Brands, I was able to send my children to school, and today they are graduates. I have built myself a warehouse for my business, and I have seven employees, I have bought three cars for business and four personal cars, excluding my children’s cars which I also purchased through BBB. I have built my family home, and we moved from our small shack. Recently I was able to fly my Managers to a holiday because I wanted to show them my appreciation for all the hard work they put into the business. Today I am able to provide and afford a fine life for myself and my family; I am a proud Botle Buhle Brands Distributor. Sombu’s message to you: “This business changed my life, and it can change yours too. Botle Buhle Brands came into my life at a time where I was demotivated and struggling financially, but I had faith that it would work out, and look at me today.”
