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.

[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.

[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?

[PaulG]

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

Yes as long as it is registered as a Pty you are free to add him as a director to your existing company.

[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.

[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.