Article by The Tax Shop Accountants
Many startups have questions about how to run a business. Let’s look at six common frequently asked questions about startups when they consider shares and taxes.
How many people do I need in my company for shareholding?
Every company has an authorised share capital, which refers to the number of shares authorised and ‘created’ by the Memorandum of Incorporation (MOI). The creation of shares takes place, initially, during the registration process and is reflected on the incorporation certificate, available from the Companies and Intellectual Properties
Commission (CIPC). All companies must have at least one share, and thus, at least one shareholder, in order to be validly incorporated as a private company. It is usual to have 1 000 shares allocated, although there is no limit to the number of shares that a private company can allocate in its MOI.
How do I add more shareholders once my company is already registered?
After registration, if the company is a newly registered entity, the shares will be ‘issued’ to the shareholder(s). The company does not need to issue all the allotted shares and may decide to only issue a percentage of the allotted shares. This is recommended to allow the company to issue further shares to new shareholders down the line, if necessary, and allows the company to remain flexible without going through the process of passing further resolutions to create (or allot) additional shares.
Shares are then issued to the shareholder(s) by the directors of the company, who are authorised to do so by means of a resolution to that effect. Upon issuing the share(s), the company, through its authorised directors will provide the shareholder(s) with a share certificate and enter the name and details of the shareholder in the company’s register of members. Once issued, the share certificate is conclusive evidence of ownership, unless proven otherwise and allows the shareholder to exercise their rights as a shareholder.
How do I view/receive my documents for my company registration?
It is sometimes necessary to view all the details for a close corporation or a company. Various certificates can be download from CIPC e-Services portal. A paid certificate (currently R30) provides all the details of the entity. The various disclosure certificates can be accessed as follows:
- Log into your CIPC e-Services portal
- The landing page of e-Services will be displayed. Click on the “Certificates & Disclosures” link and select the desired certificate.
It is important to note that, while paid ’Certificates of Confirmation’ can be downloaded in this way for most companies, duplicate founding documents can only be requested from this section if you registered the entity yourself. To specifically request duplicate documents for your company that you have not registered yourself you can request them online at
http://www.cipc.co.za/index.php/find-enterprise-ip-informatr/moo2/public-disclosure/.
Where can I retrieve my B-BBEE certificate from?
CIPC customers can apply for a B-BBEE certificate on the e-services website, and/or Bizportal.
For a business with a turnover of less than R10 million, a B-BBEE certificate is not required. An affidavit must be signed and stamped by a Commissioner of Oath. Once the affidavit has been stamped by Commissioner of Oaths, the affidavit serves as a B-BBEE certificate as no other verification is required for Exempted Micro Enterprises.
How do I register my company for UIF?
There are three ways in which you can do this:
1. Via SARS e-filing
2. Via Ufiling
3. The Bizportal
How can I get my business’ income tax number?
There are various ways in which you can request your income tax number from SARS:
1. Send SARS a query.
2. You can get it on e-filing if you are registered as an e-filer. All you need to do is log on and check your number.
3. You can also request your notice of registration via the SARS MobiApp if you are a registered e-filer.
4. E-filing has been updated to allow taxpayers to request the Notice of Registration (IT150) under ‘SARS Registered Details’ menu option.
5. At a SARS Branch. Remember to make an appointment before you visit a branch.
If you have another other questions, please contact the Tax Shop Accountants.
The Tax Shop Accountants is a proud Partner of the NSBC