SMME NEWS 4 January 2018 Innovator Trust launches flagship programme for SMMEs SMME Staff Reporter The innovator trust launched a ground-breaking ‘Youth Entrepreneurship programme’ in December 2017. The Innovator Trust is an enterprise development programme created specifically for the Information and Communication Technology (ICT) sector, delivering quality and results specifically designed business development programmes, aimed at facilitating growth of SMME businesses. This initiative is the brainchild of South Africa’s leading service provider, Vodacom. In 2014, Vodacom made a bold move to make a significant investment to impact on developing SMME businesses in the country. The service provider granted the Innovator Trust, an independent organisation, a R750 million loan facility for investing in YeboYethu shares to finance the enterprise development programme. To date the trust has drawn on R600m of the Tashline Jooste. (internet photo) facility. According to Tashline Jooste, CEO of the Innovator Trust who is also the member of the board of trustees, the main aim for this trust to fuel small businesses. “The Innovator Trust primarily uses share dividends and interest earned to fund the trust administration and the various projects to support established small businesses in the ICT sector to grow. The Innovator Trust was established with a clear mandate to: accelerate transformation in the ICT sector through the development of blackowned ICT businesses,” said Joote when speaking to fin24. Jooste also highlighted the significance this trust makes in filling up the divide. “Innovator Trust provides a tailored development programme for selected, established small businesses in the ICT sector. Through training, mentorship, networking and infrastructure support the Innovator Trust is helping to create ICT leaders of the future. Through our Enterprise Developmental Programmes, we are able to reinforce the efforts of the beneficiaries in making their vision a reality,” said Jooste before adding that, “I’m passionate about creating opportunities for SMMEs and, specifically, female-owned businesses and it is a crucial element in the Innovator Trust’s aim of growing and nurturing SMME’s in the ICT sector. The entrepreneurial world is not an easy one to start out in, but with the right guidance and knowledge, it has the potential to change someone’s life forever.” The Youth Entrepreneurship Programme (YEP), is aimed at equipping local unemployed youth with the requisite set of skills to become cutting-edge entrepreneurs. The tailor-made youth entrepreneurial programme aims to drive innovations and create job opportunities that could bring significant changes to the local economy. SMME Staff Reporter The Department of Trade and Industry (the dti) invites Black Industrialists to apply for participation in the Trade Mission to Mozambique that will take place from 5-9 March 2018. The mission to Mozambique is part of the implementation of the Black Industrialists Programme. This programme is aimed at promoting industrialisation, sustainable economic growth and transformation through the financial Minister announces business opportunity for Black Industrialists and non-financial support of blackowned entities in the manufacturing sector. The BIP is anchored on three fundamental pillars, namely access to capital, access to markets and non-financial support. Companies in agro-processing, economic infrastructure (general engineering services, railway, and ports) and energy (hydro, renewable, solar, petroleum, gas) are encouraged to apply to the department by 26 January 2018. The Minister of Trade and Industry, Dr Rob Davies says the mission is part of the department’s strategy to increase trade between South Africa and Mozambique. “The objective of this mission is to increase black industrialist’s trade with businesses in Mozambique. This is an ideal platform for the industrialists who would like to export value-added products and services. I am encouraging the industrialists to take part in this mission and go form partnerships with their Mozambican counterparts for the exploitation of business opportunities in the Mozambican economy,” says Minister Davies. He adds that South Africa has become the main trading partner to Mozambique and the relations between the two countries are cordial as demonstrated by the growing bilateral trade which Minister of Trade and Industry, Dr Rob Davies. Picture by BuzzSA amounted to more than R42 billion in 2016. Companies that are willing to participate will be funded and will be screened according to the Black Industrialists Guidelines. More information can be obtained from: www.thedti.gov.za
January 2018 SMME, what you should know SMME NEWS 5 How To Register A New Company CIPC registers Companies and Co-operatives. It is not necessary for all businesses to formalise by registering with the CIPC. For some businesses, such as informal businesses and sole proprietors, there may not be sufficient benefits. Businesses that wish to transact with government and the formal sector, or that wish to access certain types of government support, are generally required to be registered with the CIPC. STEP 1: RESERVE THE COMPANY NAME In terms of the Companies Act, 2008, a company may be registered with or without a company name. When a company is registered without a reserved name, its registration number automatically becomes the company name. This is the quickest way to register a company. Where to go: Companies and Intellectual Property Commission (CIPC) Cost: R50 if done electronically and R75 if done through a paper system. Time to complete: 3 days The applicant can either apply for a company name as part of the process, use a name that was previously approved, or register the company using the registration number given by the CIPC as company name. If the applicant chooses the first option, he or she will need to enter between 1 and 4 proposed company names, in order of preference. The first available will be selected. STEP 2: REGISTER AT THE COMPANIES AND INTELLECTUAL PROPERTY COMMISSION (CIPC) Where to go: Companies and Intellectual Property Commission (CIPC) Cost: R125 for a private company, R475 for a non-profit company registered without members Time to complete: 10 days What to take: Details about the owners/directors (Names, Nationality, ID/Passport number, Appointment date, Date of Birth, Phone, email, Physical addresses as well as the postal addresses); Details about the company (Financial year end, Authorized shares, Email address, website, physical address and postal code) An entrepreneur has 4 different ways to register a company with the Companies and Intellectual Property Commission (CIPC). 1. Through the CIPC website (www. cipc.co.za) 2. Self-service terminals 3. Certain bank branches 4. By email To register the company online, the entrepreneur needs to register as a customer on the CIPC website (www.cipc.co.za). Once registered, the applicant has to fund the new virtual account with (125 ZAR). The account can be funded via wire transfer. Once the steps mentioned above are completed, an email will be sent to the applicant requesting additional documentation to be emailed to CIPC. Which are: • Certified ID copies of all indicated initial directors and founders • Certified ID copy of applicant if not the same as one of the indicated initial directors or founders • Signed registration forms Finally, once the company is registered, the customer receives an email confirming that the company is registered and a link back to the CIPC website to retrieve the disclosure certificate and all the incorporation documents. STEP 3: OPEN A BANK ACCOUNT Where to go: Bank Cost: R0 (Depending on bank you may have to put some money into your business account) Time to complete: 1 day In order to open a bank account, the applicant must submit proof of the directors’ identity and the original company documents. This procedure may take longer if the required documents per the Know Your Customer (“KYC”) requirements in the Financial Intelligence Centre Act No. 38 of 2001 are not in order. STEP 4: REGISTER FOR INCOME TAX AND WITHHOLDING TAXES (PAYE, UIF AND SDL) Where to go: South African Revenue Service (SARS) Cost: No Charge Time to complete: 1 day The Companies and Intellectual Property Commission (CIPC) and the South African Revenue Service (SARS) are linked electronically. When the entrepreneur visits a SARS branch to register for income tax, SARS retrieves the information previously provided by the entrepreneur to the CIPC during company registration. The entrepreneur still needs to visit the SARS office for: a) Income tax registration – for which the applicant needs to bring Owner ID, Registration Certificate, and Bank Statement. b) Employees tax (PAYE), Unemployment Insurance Fund (UIF) and Skills Development Levy (SDL) registration: The entrepreneur must submit the EMP 101e form which is available online or at the local SARS office. Registration is immediate and can be done online or at the branch. Explanation of acronyms: • Pay as you earn (PAYE) tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid. The employer is compelled to register in terms of paragraph 15 of the 4th Schedule to the Income Tax Act. • Unemployment Insurance Fund (UIF): These funds are used to provide short-term relief should workers become unemployed or unable to work for various reasons. Any employer who is liable to register for the employees tax (PAYE) is required to register with SARS for the unemployment insurance contributions. • Skills Development Levy (SDL): This levy is used by the government to fund education and training as stated in the Skills Development Act, 1998. This levy is payable monthly by employers to SARS. STEP 5: Register for VAT Where to go: South African Revenue Service (SARS) Cost: No Charge Time to complete: 7 days Businesses with annual taxable turnover of more than ZAR 1,000,000 must register for VAT. The application for the registration of VAT is done on a VAT 101 form. VAT registrations are completed in real time at the entrepreneurs’ nearest SARS branch. It typically takes a week to secure an appointment. In order to register for VAT, an entrepreneur will need to complete and sign the VAT 101 form and submit the form together with the following documentation: (1) certified copy of certificate of incorporation; (2) certified copy of proof of the company’s residential address, not older than three (3) months; (3) original bank statement, not older than three (3) months; (4) original balance sheets and income statements (proof of annual turnover); (5) original identity document and certified copy thereof of the representative vendor submitting the VAT 101 form; (6) certified copies of the identity documentation of the directors of the company; and (7) original proof of residential address of the representative vendor. Look out for our next issue where we will explain what you, as a business owner, should legally comply with in your relevant business industry. Business is not always about what you good at Marvellous Zondi It is often said that if you start a business in a field that you are good at you are bound to succeed. What is more potent than that is starting a business that is viable. This may seem farfetched, but if you give it a thought you will realize that business is not always about what you are good at. It should be about what makes ‘business sense’ A general example for this would be a football fan living in an area dominated by rugby fans, does it make business sense for that person to sell football replicas because he loves soccer and he is good at it? What makes business sense is for that person to start a business selling rugby regalia. Much like in other fields as well, be a businessman, it’s not about what you like – it’s about what your potential customers want. A huge number of businesses fail because people fail to understand that they are doing it for the people and then profits. People bring profits, how can you make profit if the people do not buy into the products or services that you are offering. This mistake often attack a lot of SMMEs because they follow their hearts and forget about doing feasibility study. Too much capital has over the years been spent on fruitless companies because company owners follow their hearts and not what makes ‘business sense’. This is why business plans are so important, invest more time in going around looking for something missing within the area in which you want to open your business at. This will enable you to open up a business that people desperately need rather than being just another drop in the ocean.