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Thread: Application for registration for PAYE - Partnership

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    Application for registration for PAYE - Partnership

    Hi,

    I will be assisting a client to get their partnership registered for PAYE at SARS.

    The partnership is an informal arrangement between 2 sisters, with no formal partnership agreement in place.

    The PAYE registration form (EMP101e) requires a "Copy of the partnership agreement/affidavit" to be attached to the application. Could anyone please advise on what this agreement / affidavit should contain?

    The partnership agreement vs the Affidavit: Would it be easiest to just go to the police station for them to do the affidavit rather than setting up the partnership agreement now?

    Please advise.

    Thank you!

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    Platinum Member Mike C's Avatar
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    I would STRONGLY recommend a partnership agreement. No matter how informal and good things are at the moment, and ESPECIALLY because it is siblings, a parnership agreement is a must.

    If things continue well - then they will be happy with the agreement for years to come.
    If things go sour for any reason (and they can very quickly) then they both have the safety and security of an agreement which will protect their interests.
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

  3. Thank given for this post:

    CLIVE-TRIANGLE (02-May-13), Dave A (02-May-13)

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    Diamond Member Justloadit's Avatar
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    and don't forget the divorce clause, actually I mean when they wish to dissolve the partnership.

    Google for a sample agreement.

    Must have each ones duties and responsibilities,
    Remuneration each will get and why
    If any loan accounts how and when it will be paid
    If dissolving who gets what, and what are the terms and conditions under who gets what
    etc......
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
    Solar and LED lighting solutions - www.microsolve.co.za

  5. Thank given for this post:

    CLIVE-TRIANGLE (02-May-13), Dave A (02-May-13)

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    Hi. Thank you very much for the replies and advice. I appreciate it. I have recommended that they get an agreement in place.

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