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Thread: Transferring my websites into my company

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    Transferring my websites into my company

    Hi all, I've got a few websites I've been running for a few years which make a few thousand rand/month, but recently decided to start a pty ltd and have it own the websites. The pty is now up and running, and somehow I need to transfer ownership of the site to it.

    Questions:
    1) Any idea how this is done? Do I have to sell it to the business or can I simply transfer it?
    2) If I understand things right, if I sell it I'll have to loan the business money to buy it from me. Then I'll be liable for CGT on the full amount as I built them from scratch, but the business can pay me back for the loan with the earnings every month and I won't need to pay income tax on that right?
    3) How on earth do I get the legal ownership moved? Do I simply change the name in the domain registrar? Is there some document to fill in? Does anyone have a template that would work for a website that's the asset?

    Thanks

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by patrickza View Post
    1) Any idea how this is done? Do I have to sell it to the business or can I simply transfer it?
    Even if you "just transfer" the asset, it should be for some consideration in return. If there's any significant value, SARS may just deem a value and hit you with CGT anyway.
    (It happens often with fixed property - I have no idea whether it's a regular issue with websites).

    Quote Originally Posted by patrickza View Post
    2) If I understand things right, if I sell it I'll have to loan the business money to buy it from me. Then I'll be liable for CGT on the full amount as I built them from scratch, but the business can pay me back for the loan with the earnings every month and I won't need to pay income tax on that right?
    Correct. Although there is one more thing you need to factor into that equation. When the business is paying back the loan, it will be doing so out of profits made in the company that may attract tax.

    Quote Originally Posted by patrickza View Post
    3) How on earth do I get the legal ownership moved? Do I simply change the name in the domain registrar?
    To cover all bases, have a sales agreement between yourself and the company that covers the terms. The company should also have a directors resolution to make the purchase and authorise whomever to sign the purchase contract on behalf of the company.
    The trouble with opportunity is it normally comes dressed up as work.

    Alcocks Electrical Services | Alcocks Pest Control & Entomological Services

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    Thanks Dave, that's very useful. So as the only director of the company can I sign the purchase contract for myself personally and for the company?

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by patrickza View Post
    Thanks Dave, that's very useful. So as the only director of the company can I sign the purchase contract for myself personally and for the company?
    Essentially yes (as in who else is going to sign for you but you, and if you are the sole director, who else but you can make the decisions on behalf of the company).

    With the parties being so closely related though, it might be an idea to get the document notarised so that there is no argument about the date (in particular) of the transaction.
    The trouble with opportunity is it normally comes dressed up as work.

    Alcocks Electrical Services | Alcocks Pest Control & Entomological Services

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    These are the steps that usually takes to transfer domain from one server to another.

    Step 1: Make sure your website's software can run under Account B
    Step 2: Backup your Files
    Step 3: Add the domain to Account B and upload your content
    Step 4: Verify the domain is displaying properly on Account B
    Step 5: Lower TTL Value for the domain
    Step 6: Move the DNS Zone File to Account B
    Step 7: (Optional) Move the Domain Registration to Account B

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