Starting up a New Business With a partner.. What to look out for

[duncan drennan]

As a matter of interest what are we looking at costs for starting up a company?
Hidden costs etc.

That is really difficult to say with the limited info at hand. You can buy a shelf company or CC (not sure of the cost, google for it), or set one up from scratch. For a PTY from scratch it can vary depending on who you get to do it � I used Highway Corporate Services to set up my PTY (they also do CCs). Browse around their site, and CIPRO's for more info.

Trickier thing is whether the product needs protection, and if you want to register trademarks etc. etc. This is all HIGHLY dependant on what you are selling.

[Snoopy_inc]

well i tried to say that it would be a new venture.... so lets just for arguments sake say im starting a cc from scratch. what am i looking at cost wise and documentation wise.... give us the 101 guide to starting a business from nothing

[Dave A]

Consider using Swiftreg for getting the cc sorted. I had an associate use them and (from memory) cost was well under R500.00 including change of name and members interest.

The cc will have to register for income tax - Additional registrations depend on crossing thresholds. In brief:

Got employees
Regardless of size of payroll, you will need to register for UIF and Workmans Compensation

Got employees earning a taxable income
You will need to register for PAYE

Turnover higher than R300 000.00 per annum
You will need to register for VAT

Payroll higher than R500 000.00 per annum
You will need to register for SDL

Turnover higher than R5 million
You will be a Qualifying Small Enterprise and will need to get a QSE scorecard in terms of BEE legislation

Turnover higher than R30 million
You will have to produce a full BEE scorecard

20 or more staff
You will have to appoint a safety representative

50 or more staff
You will need to establish a horde of committees...

Can I please stop there?

Please note, this list is in brief and there are wrinkles. For example, you can apply for a voluntary VAT registration once your turnover is past R20 000.00.

Also, I might have missed some and we haven't got to the "really should have" category yet, such as public liability insurance and partnership agreements.

EDIT: You will have to open a bank account. Welcome to the FICA challenge for a new business with no history.

[duncan drennan]

Use CIPRO's website to figure out whether your name for the CC is available. You will have to submit a list of 5 possible names (in order of preference), which they will evaluate and then reserve a name for you.