Frequently Asked Questions

 The different types of Companies?   Accounting Officer qualifications 
 All VAT related questions?   TAX, PAYE, UIF related questions 
 Duties of an accounting officer   What records must I maintain? 
 Why make use of FACTCORP.CO.ZA?   When must I register for TAX? 


The different types of Companies, (Companies Act 2008)

The two types of companies incorporated under the Act are a non-profit company and a profit company.

Profit companies are incorporated as follows:

•Private Companies
•Public Companies
•Personal Liability Companies
•State Owned Companies

Non-profit Companies (NPC)

•A company incorporated for public benefit or other object relating to one or more cultural or social activities, or communal or group interests; and
•The income and property of which are not distributable to its incorporators, members, directors, officers or persons related to any of them.

Private Companies (Pty) Ltd

Private companies under the new Act are prohibited to offer securities to the public and the transferability of their shares are also restricted. Private companies however, are no longer limited to 50 members as was the case under the current Companies Act.

Public Companies (Ltd)

The definition of a public company is largely unchanged. The only difference is that a public company under the new Act only requires one member for incorporation compared to the 7 members under the current companies Act.

Personal Liability Companies (Inc)

The directors and past directors (where applicable) of such companies are jointly and severally liable together with the company for any debts and liabilities arising during their periods of office.

State-Owned Companies (SOC Ltd)

A State owned company is either a company defined as a “state-owned enterprise” in the Public Finance Management Act 1 of 1999 or a company owned by a municipality. The majority of the provisions of a public company will apply to state-owned companies as well.

Foreign and External Companies

A foreign company is a company incorporated outside of South Africa , irrespective of whether it is a profit or non-profit company or carrying on business in South Africa or not. A foreign company is prohibited from offering securities to the South African public unless it follows the specific provisions of the companies Act, relating to offers to the public.

A foreign company is required to register as en “external company” with the CIPC if it conducts or intends to conduct business in South Africa. The Companies Act in terms of Sect 23 lists a series of activities which will be regarded as conducting business. This list is much broader than the provision in the 1973 Companies Act relating to a “place of business” in South Africa.

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An Accounting Officer is a member of one or more of the following professional bodies:

  • Accountants and Auditors registered in terms of the provision of the public Accountants' and Auditors' Act 51 of 1951;
  • Member of the Institute of Commercial and Financial Accountants of South Africa;
  • Member of the Institute of Administration and Commerce of South Africa;
  • Member of the South African Institute of Business Accountants;
  • Member of the South African Institute of Chartered Accountants;
  • Member of the South African Institute of Chartered Secretaries and Administrators;
  • Member of the Chartered Association of Certified Accountants;
  • Member of the Chartered Institute of Management Accounts.
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All VAT related questions?
Requirements to register for VAT?
You can only register for VAT if you have traded at least R50,000 at least 3 months or for the year and if a bank account is opened in the business's name (This is called a volunteer Vat Registration). VAT registration is only compulsory if your turnover exceeds R1,000,000.00 per annum. Therefore, you don't need to register for VAT until you have shown sales for R50,000 for at least 3 months or equal to a Year.
Can anyone register VAT on behalf of me?
No, SARS has strict rules that you have to register for VAT & other Registrations yourselves due to fraud in the past. They have an interview with you before you can register for VAT. We can help you make the process smoother and that's a service we provide to all newly registered business's done with us.
How long does it take to register for VAT?
This registration process is normally completed within 21 working days after your interview with them and are depended on the SARS office where you have to be registered at.
Can I charge VAT if I'm not registered for VAT?
No, you can't charge VAT if you are not registered for VAT and don't have a VAT Registration Number. It's a serious criminal offence if you charge VAT and are not registered to do so.
How do I pay VAT?
Your Accounting officer can help you determine how much you need to pay to SARS. Once this is determined, you can go to and follow the instructions online.
What's the cost to register for VAT?
SARS does not charge for this service.
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TAX, PAYE, UIF related questions?
Do I need to register my business for Income Tax?
Yes, the registrar normally sends this information to SARS once your business is registered, but experience has shown us the the members need to register it themself.
Do the members/directors of the business need to be registered for Income Tax?
Yes, all members need to register for Tax even if they are earning below the threshold.
How long does it take to register for Income Tax?
This registration process is normally completed within 10 working days after your interview with them and are depended on the SARS office where you have to be registered at.
How do I pay Income Tax?
Your Accounting officer can help you determine how much you need to pay over to SARS. Once this is determined, you can go to and follow the instructions online.
Do I need to register my business for PAYE and UIF?
If you have employees/contractors/members/directors in the business who earn a salary, you have to register for PAYE and UIF with SARS and the labour office.
When do I have to pay PAYE and UIF?
Every 7th of each month or last working day if the 7th fall on a public holiday, Saturday or Sunday.
How do I determine how much PAYE and UIF I have to pay?
It's best to contact your accounting officer and let him work it out for you and save you all the trouble.
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The Close Corporation Act requires that every CC must appoint an accounting officer together with your first CC registration.

If you do not have an accounting officer, we will appoint ourselves as your accouning officer in order to speed up the registrations process. You can at any time change the accounting officer.

If a vacancy occurs, then the CC must within 28 days appoint another accounting officer to take the place of the previous accounting officer. If this position is vacant for a period of 6 months or longer, then the members of the CC will be jointly and severally liable for all debts of the CC.

The duties of an accounting officer are set out in the Act. Note that an accounting officer cannot perform the duties of an auditor. The accounting officer will scrutinize the accounting records of the CC for compiling the annual statements, on behalf of the members of the CC.

The CC act does not require for an audit to be carried out, but if you so desire we can arrange this.

There are no set requirements regarding the remuneration of your accounting officer, it is an agreement between the corporation and the accounting officer. The accounting officer will normally follow fee guidelines as set out by the institution.

In order to streamline the duties of the accounting officer, please read our section "WHAT RECORDS MUST I MAINTAIN?".

There is no set law regarding the duties of bookkeeping services. You may use any bookkeeper, qualified or not to maintain accurate accounting records.

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Every business needs to keep accurate accounting records.

The members/directors of a business can do the monthly bookkeeping themselves. The following needs to be kept by them:

The records include;

Invoices, cashbooks, ledgers, bank statements, journals, cheque books, deposit slips, stock records, asset register and any other form of record keeping of income, expenses, assets or liabilities.

The more accurate these records are kept, the more easily your accounting officer can verify your records and therefore save you thousands on accounting fees and taxation.

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Our firm offers the fastest and most effective service to register a business with the registrar at very competitive rates. We charge for the service we give, because we know how the process works. Some others may charge less, but you won't get the same service and time periods. We’ve been able to register a business in 6 Hours after the client filled in the application, at no extra charge. We give you the same service for the same price – no hidden costs!

To register a business can be time consuming and expensive if the correct procedure is not followed correctly. By completing our online application, any individual can register a business in the least amount of time by following the simple instructions given – a first in the country. We are the only online registration office that offers an online tracking system with which you can track your application.

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You can register for Company Tax anytime, but normally when your business is registered as a new entity, SARS will register your business for Tax automatically, but might take up to 6 months before you will receive feedback from SARS to your registered postal address.

You can however register for tax if the need is there to have a tax number sooner. We can also assist with this service, please see our list of options under registrations.

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