My business (a limited company) is doing well enough now that I can declare a small dividend and take some money out of the company. Can someone please tell me what the formalities are for declaring a dividend for a simple one-man band Pty (Ltd) company? I understand the accounting side of things which is basically:
Debit - Retained Earnings
Credit - Dividend Payable
Debit - Dividend Payable
Credit - Bank Account
I also understand the tax side of things, and know how to submit the Dividends Withholding Tax return to SARS and to withhold 15% of the paid out dividend. What I don't know is what formal documentation do I have to generate to legally declare the dividend e.g. any resolutions, minutes of meetings, etc?