# Starting business - sole proprietor?!



## Spud468 (May 1, 2011)

Another thread - different topic... We will be moving back to SA in August (flights booked  ) 

Question is... my company in the UK want me to work as a rep for them in SA. I will earn a commission and I will invoice them for my expenses and time. 

I have been advised to start my own small business as a sole proprietor, however, I know nothing at all about running a business. I have always been employee and things have always been sorted out for me regarding invoicing, tax etc. 

How difficult is it to start up my own small business and what should my main things be on my to do list? Should I hire a financial advisor to help me sort things out as soon as I arrive? 

We will initially arriving in JHB (so that we can catch up with family) and we will then relocate (probably to Knysna) after 2 months.

Will I need a special permit to run a small business from a rented residential property? 

I feel I am throwing myself in the deep end, but I am up for the challenge...


----------



## Johanna (Apr 13, 2009)

I don't know of any one on these forums who can give you all the advice you need.
Joaschim helps a lot with permits, perhaps you should contact him.
I am sure that you will need municipal approval to run a business from home ( depends on the type of business , I suppose?)

The best I could find for you:

Cost of Doing Business in South Africa


----------



## Daxk (Jan 20, 2008)

I assume you will be merely using home as an office rather than a manufacturing base?
you need to find a tax expert but essentially you will register as a self employed agent with SARS, open a separate bank account for the business, you can run a easy set of books such as quickbooks or even just an excel set of basic accounts,
Purchases Journal, sales Journal, cashbook, petty cash analysis.

Its an easy run if you are not employing anyone full time.
From a tax point of view, whatever percentage of floor area your Home office is you can claim as a deduct from rent, Electricity, services etc..
run a separate phoe line,keep meticulous mileage records on the car as he reciever will disallow personal travel as well as mileage to "work" so always start your day at the nearest client to you, even if you only drop a business card.

its better to be a VAT vendor as if you can as there are a lot of sins that can be borderline.
find a good tax guy, when you have enough posts pm me and if i think you are genuine I will give you a company i have used for the past 15 years.

Your ideal situation is to be paid somewhere such as Jersey.... and then bring in the Income you need to live


----------



## Guest (May 5, 2011)

Spud468 said:


> Another thread - different topic... We will be moving back to SA in August (flights booked  )
> 
> Question is... my company in the UK want me to work as a rep for them in SA. I will earn a commission and I will invoice them for my expenses and time.
> 
> ...


Hi

To confirm, you and your family are all UK nationals?

If so, simply registering a sole prop will not be easy. Any foreign national wanting to work in SA or run a business will need a permit.

For business permit, you would need too show that you can invest R2.5million into the business. Further, after 2 years the business will need to show that it has employed 5 South African nationals.

If you will be working for a UK based company, it may be advisable for them to register a branch in SA, and then one could have you transferred from the UK company to the SA branch.

Do send me a private message, as there are is some more information I would need to be able to advise you on all your options (and I am not sure if you wish to share this info openly on a forum).

But at least, I hope that I have helped you get started. Issues about tax etc can all be dealt with, and are easier to organise than you think. First we would need to clarify what permit (if any) you would need to work in SA.


----------



## Daxk (Jan 20, 2008)

Ooops! did not think about the UK nationality thing


----------



## Spud468 (May 1, 2011)

Apologies for the late response. Thank you for the direct contact... This does help  

Daxk - I am not a UK National... We are on South African passports (working on ancestral visas). 

Many thanks


----------



## Jujube (Sep 12, 2011)

*Sole Trader*

Hi there,
I'm also thinking of doing work as a sole trader while in SA. I'm currently applying for the 'Relative's Permit' which I would then add a business endorsement to it when I arrive in South Africa.

To add this endorsement, I can't seem to find what I would need exactly to present to Home Affairs? 
- Registration to SARS as an individual?
- Proof that the company I'm working for now will continue doing work me in South Africa but as contractor?
- anything else?

Thanks.

Julien


----------

