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Thread: What are the benefits of registering your small business?

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    Site Caretaker Dave A's Avatar
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    What are the benefits of registering your small business?

    This article has me begging the question - what are the benefits of registering your micro/small business?
    THERE are more than six million small businesses in South Africa but only 17 percent are registered because their owners do not know the benefits of doing so, a national survey has revealed.
    full story from The Sowetan here
    I hear rumours of state-funded financial assistance programs - wouldn't know where to find one. Are there any other real benefits that offset the freedom of being in the "informal sector?"

    The story also gives a pile of stats which as a small business owner myself I find more appalling than surprising or shocking. For example
    Entrepreneurs work about 63 hours a week.
    and for most of us (especially given the hours) the pay isn't that hot either.

    "Poor exploited civil servants" that go on strike for far-above-inflation pay increases think they have it tough - try being a small business entrepreneur!
    Last edited by Dave A; 20-Sep-10 at 03:00 PM.
    The trouble with opportunity is it normally comes dressed up as work.

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    Diamond Member adrianh's Avatar
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    63 hours a week - must be half day workers...
    How easily someone is offended is directly proportional to how stupid they are.
    ~GS Elevator

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    Quote Originally Posted by Dave A View Post
    This article has me begging the question - what are the benefits of registering your micro/small business?
    Not many in my opinion. For the micro guys I wouldn't bother. The only 2 reasons I can think of off hand are:

    1) Where there is more than one business owner" who will be pooling resources (money, time , expertise, etc) into the venture.
    2) Where you want an element of protection from losing your personal assets in the event of business failure.

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    the small bussiness owner doesnt benefit from registering only all the collection people like the eca...ecb...bargaining council...sars...uif...workmans comp...and boy the list goes on everyone trying to get their piece of the action for doing nothing...just taking your hard earned income...and if you are a mambe rof the eca then you have to pay additional fees to the bargaining council you get my drift.

    the question you need to ask...how do "you" benefit from paying all these people...trust me when i tell you after 19 year i have never and i mean never benefited from any organisation which has taken my money for as many years as i have operated...even when i started my bussiness i had been paying uif for years...i had no claim against a cent i had contributed for more than 10 years.

    as a sole prop if you are injured on site nobody pays you out...because you dont fall under the cover...only if you are a cc and registered as a worker in the company...so being a small bussiness...one man band...trust me there are no benefits...you just pay...so my advice...keep a low profile and keep your nose clean...you save thousands...if you get caught and as the stats indcate only 16 % are registered what are your chances.

    even the bargaining councill have changed their rules and now even if an employee works for 1 day a week you still have to pay the fees...one labourer will cost you almost R500 per month...and something to watch out for is they charge you some fee just because you register with them for yourself...i complained and they removed the fee because they could tell me why i had to pay it...as i didnt benifit in any way from it.

    i believe a one man...sole proprietor and your turnover is less than lets say R50 000 er month and you employ less than 2 people you should be exempt from all these fees...like turnover tax...we should have to pay a small fee for our turnover which covers everything...like the bargaining council... tax.... uif... etc

    and even better still if you run at a loss until your bussiness starts making a profit you get paid out...wouldnt that be great...because i feel when my bussiness has made money i have paid everyone but let me not have a good month everyone still wants their money...regardless.

    i know what you are gona say but it would never work because like medical aids... tender document there are always the crooks who mess it up for everyone else.

    t

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    Dave A (20-Sep-10)

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by murdock View Post
    the small bussiness owner doesnt benefit from registering only all the collection people like the eca...ecb...bargaining council...sars...uif...workmans comp...and boy the list goes on everyone trying to get their piece of the action for doing nothing...
    Agreed for the most part, except I'd rate being covered by workmens compensation as a real benefit of incorporating. As you point out, the sole proprietor and partner isn't covered.

    But then the sole proprietor or partner's salary isn't included in leviable wages/salaries paid either. Mixed blessings
    The trouble with opportunity is it normally comes dressed up as work.

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    Hey,Dave
    how clever you are
    you are talking about what is really important on each topic
    how can to be like you
    can you share some skill
    how to follow
    how to be attracted by others
    thanks dude

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    Diamond Member adrianh's Avatar
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    @alexwang - you is learn spoke engrish no.one and put capital and points and commas in sentences befor you get clever with South African man, dude
    How easily someone is offended is directly proportional to how stupid they are.
    ~GS Elevator

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    hi,adrah
    don't be so strict
    i tried to do it well
    so i follow Dave and try to learn from him
    but thanks all the same for your answer

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    Diamond Member adrianh's Avatar
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    Hey Alex, no problem. We all have a lot to learn from each other.
    How easily someone is offended is directly proportional to how stupid they are.
    ~GS Elevator

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    Diamond Member adrianh's Avatar
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    Alex, I misread your first posting, I thought you were being rude, now I realize you were giving Dave a compliment.

    You see, I learned something today...
    How easily someone is offended is directly proportional to how stupid they are.
    ~GS Elevator

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