Anyone Running a Cash only Business

[Hazy]

Hi All,

I would to know if its possible to run a cash only business, and how i would keep track of my expenses, invoices etc for SARS.

Am on a spousal permit that could not allow me to work for almost 2 years and i hate seating around doing nothing, i decided to apply for a business endorsement from Home Affairs in April and it was approved last month, my company was registered last year.

So whats the problem.

Well, i have visited the big five banks to try and get an account for my business and apparently rules have changed and i cant get an account because my permit says Visitor(which by the way is a section 11(6) of the immigration act 2002 No. 13 as amended and it is issued only to spouses who do not qualify for any of the permits listed from 13-22.

Am worried i will lose clients because they will not be able to pay cash payments if its in large amounts and i will have to turn away clients if its not cash.

Any advise will be appreciated.

I feel so helpless.

Thanks.

[PaulG]

Would it not be possible for your husband to be "involved" in the business, register a company with CIPC and list both you and him as directors of the company. Then open up a business account with one of the banks?

[PaulG]

But the first question should have been, what business are you planning to start? This will determine how feasible running a cash-only business would be.

[Hazy]

But the first question should have been, what business are you planning to start? This will determine how feasible running a cash-only business would be.

My husband has his own company but its more of business consulting and the company name will not fit with what am doing, i sale and hire out LED Lighting equipment to the Events industry.

My head is spinning

Thank you PaulG.

[Basment Dweller]

Seems odd that you are approved of business endorsement by home affairs and can register a company but can't open a bank account?

[Hazy]

Seems odd that you are approved of business endorsement by home affairs and can register a company but can't open a bank account?

Odd in which manner? Each organisation has their own rules i guess.

[PaulG]

My husband has his own company but its more of business consulting and the company name will not fit with what am doing, i sale and hire out LED Lighting equipment to the Events industry. .

Hazy, it seems like it will only be an issue if you try to operate under a sole proprietorship. If your husband has an existing business you could register a new company as a subsidiary of the existing business (as long as it's a Pty) or a new business that your husband is a director of as well. You can be a director of as many companies as you like. You just need to think about the potential of the business, how much profit you think you will make and then determine what type of entity makes the most sense.

Good luck, but it does sound like not having a bank account could limit your customer base in that type of business.

[reuphk]

Why dont you just appoint your husband as a Director in the company you registered?
The alternative is that your husband opens a savings account (in his name) and you use that as your business account.
This is rather strange though, because if you have a "business" registered etc. with SARS, then surely your business documents is sufficient to open a banking account?
Perhaps the banker you spoke to is not so clued up. Running with cash is risky anyway you look at it, I would advise you to persevere by going to the bank's head office for help (approach whichever bank your husband is with first).

[Hazy]

Hazy, it seems like it will only be an issue if you try to operate under a sole proprietorship. If your husband has an existing business you could register a new company as a subsidiary of the existing business (as long as it's a Pty) or a new business that your husband is a director of as well. You can be a director of as many companies as you like. You just need to think about the potential of the business, how much profit you think you will make and then determine what type of entity makes the most sense.

Good luck, but it does sound like not having a bank account could limit your customer base in that type of business.

.

This could work. Can i add him on the already registered company that i have or do i need to open another one?

[Hazy]

Why dont you just appoint your husband as a Director in the company you registered?
The alternative is that your husband opens a savings account (in his name) and you use that as your business account.
This is rather strange though, because if you have a "business" registered etc. with SARS, then surely your business documents is sufficient to open a banking account?
Perhaps the banker you spoke to is not so clued up. Running with cash is risky anyway you look at it, I would advise you to persevere by going to the bank's head office for help (approach whichever bank your husband is with first).

.

The only issue they have is that it's because its written Visitors, they want it to say Business Permit, i have tried explaining that home affairs cant issue me with that permit because then the conditions of that permit kick in, such as the R2.5million investment that foreign businesses need to invest. It seems banks don't have sufficient training on the immigration act or like you said the consultant is clueless. FNB actually did open the account, sent the card to me only to be called back by the consultant who opened the account that compliance has come back to him and informed him to close/freeze the account because it says visitors. I have emailed a full explanation to rbjacobs (The FNB Guy) to try and get some help, am yet to hear from them, he said he has forwarded the email to their business banking team.

[Houses4Rent]

Good luck with the banks. They messed up already, they will do it again....

[Basment Dweller]

Seems odd that you are approved of business endorsement by home affairs and can register a company but can't open a bank account?

Odd in which manner? Each organisation has their own rules i guess.

It's odd because there is a dependancy on having a bank account in order for a business to function and get registered with SARS.

[Hazy]

Good luck with the banks. They messed up already, they will do it again....

Kikikiki Thanks

[Hazy]

It's odd because there is a dependancy on having a bank account in order for a business to function and get registered with SARS.

Exactly! But apparently SARS doesn't need acconts anymore for you to get a tax number, am not sure how true that is.

[Basment Dweller]

Exactly! But apparently SARS doesn't need acconts anymore for you to get a tax number, am not sure how true that is.

Oh yes they do. SARS wants access to your moola so they can mainline directly into their coffers if need be!