Reading Time: 2 minutes
You have made the decision to apply for business funding and launch into the application process. The seemingly endless pile of paperwork required to work through the application is completed and you hit the “submit” button, only to be told that your business has failed to meet minimum requirements for business funding due to outstanding compliance matters.
For some business owners, this can be the first time that you will become aware of compliance issues. Inasmuch as ignorance of the law is not a defence, ignorance of mandatory compliance is equally not a defence and is, additionally, embarrassing for any business owner.
Here are 3 of the top compliance protocols that you need to be aware of to ensure your business funding application proceeds smoothly:
- Tax compliance
All businesses in South Africa are required to be registered with SARS for income tax, for VAT if annual supplies exceed R1m and for PAYE & UIF in the event that the business has employees.
If your business is not registered with SARS, get in touch with our team of experts to assist you with the appropriate registrations:
- Income tax
- PAYE & UIF
- VAT
- Annual returns
Every company or close corporation registered in South Africa is required to submit an annual return to the CIPC. The annual return summarizes key information about the trading entity and serves to confirm to the CIPC that the business is continuing in trade. Compliance with annual return protocols is signified as “AR Compliant” by CIPC. Read conversely, if a trading entity is not AR Compliant, it is a signal to a funder that the business in question is potentially not legally trading.
If your company or close corporation annual returns are not up to date or you do not have a reliable protocol for annual submission thereof, reach out to our company secretarial services team for assistance:
- Company secretarial
- Industry specific bodies
Each industry may have mandatory regulatory agencies with individual compliance protocols. Where membership of such regulatory agencies is mandatory within the industry, the entity in question is required to conform.
At MMS Group, we are serious about the compliance status of your business. Feel free to contact us if you require support in your business compliance strategy.