Our areas of expertise are business consulting, statutory services, accounting and bookkeeping, payroll and advisory services. We strive not only to provide professional and specialised services, but also to do so with integrity, client centricity, tenacity and moral excellence. We service a wide variety of clients, this inter alia include retailers, property investors, the pharmaceutical, construction and engineering industry, motor vehicle industry, information technology, consulting service companies, etc.
Business formations and statutory services
- We offer assistance and advice in choosing a business entity and/or formation that will best suit your needs, therefore enabling you to achieve your business goals and objectives (By working closely with our tax experts to ensure you pay the minimal tax within the law).
Deciding on a business entity and/or formation, which will best suit your personal needs and goals, should be the first step for any entrepreneur starting a new business. Business owners, with already registered business ventures and who have already engaged the market, might consider restructuring or acquisitions and mergers to their existing group to trade in the most cost and tax efficient manner. However, in order to achieve this, some technical and strategic planning might be required. This might be a challenging and daunting task if you are unfamiliar with the different business entities and their associated advantages and disadvantages, legal compliance, regulations and associated tax implications. With over twenty years of professional experience, specialist knowledge and expertise, we at Aretè are able to provide you with the best advice and assistance in this regard.
The different business entities can be summarised as follow
- Sole Proprietor
This is the simplest of business entities. A sole proprietor trades under his/her own name, with no separation of assets and liabilities. For example, “John Tax, an accountant, trades as John Tax Accountants”. With no separation between John Tax’s personal assets and liabilities and those of his business, means that he benefits from all the profits and assets accumulated through his business. However, he is also held personally liable for any debts that the business incurs. In other words, his sole proprietorship does not enjoy limited liability.
The following business entities are distinct juristic persons, with a separation being made between the assets and liabilities of the owners/shareholders, and those of the company. In other words, they do enjoy limited liability.
- Private company – (PTY) Ltd
This business entity may be founded and managed by just one director (known as a One-Man Company), and must have at least one shareholder, but no more than fifty, for example, “John Tax Accounting Services (Pty) Ltd.”
- Personal Liability Company - Inc
These are business entities in which both current and previous directors may be held jointly and severally liable for any debts and liabilities that occur during their time in office. This form of business enterprise is most often used for firms of professionals, such as doctors, lawyers and accountants, for example, “John Tax Accounting Firm, Tax, Smit and Sithole, Inc.”.
- Public companies (Ltd)
These are business entities that issue shares, and are often listed on a stock exchange. Public companies are liable to shareholders, and management is entrusted to a Board of Directors. For example, John Tax takes his company public, and sells shares on the Johannesburg Stock Exchange. He names this business enterprise, “TAX Enterprises Ltd”.
- Non-profit organisations/companies (NPOs)
An NPO is defined, in terms of Section 1 of the NPO Act, as a trust, company or other association of persons established for a public purpose and of which its income and property are not distributable to its members or office bearers except as reasonable compensation for services rendered. Nongovernmental organisations (NGOs) and community-based organisations (CBOs) are collectively known as non-profit organisations (NPOs). In some instances, NPOs are also referred to as Civil Society Organisations (CSO) (These companies could often qualify for possible tax benefits for public benefit organisations (PBOs) registered with SARS).
- Close Corporations (CC) (Can’t register any more)
In the past, close corporations provided small businesses with a cost-effective and simple business entity under which to trade. However, as from May 2011, no new close corporations are being registered by the CIPC. It is, however, still possible to get many if not all of the cost effective and compliance benefits if the MOI (memorandum of incorporation) of a private company is set up in such a manner (within the limitations of the company Act).
- Trusts
A trust is a legal institution in which a person, known as a trustee, subject to supervision, holds or administers property (immovable or movable) separately from his or her own assets, for the benefit of another person or persons (beneficiaries) or for the furtherance of a charitable or other purpose.
Trusts are not normally used as business trading entities due to a tax rate of 41%. However, trusts may, serve as good tax and estate planning units if careful strategic tax planning and risk management procedures are in place. (Refer to tax consulting)
Company registrations
Entities such as companies and close corporations operate in a highly regulated environment that requires, inter alia, the maintenance of various registers. After deciding on a business entity and/or planned business formation of your choice, we will assist in the registration process. This normally requires quite a bit of administrative work and time. However, with our years of experience and our professional team, we will be able to execute this process in a timely and efficient manner.
- While sole proprietorships do not need to be registered, private companies, personal liability companies, public companies and state owned companies need to register with the Companies and Intellectual Properties Commission (CIPC), formerly known as the Companies and Intellectual Properties Registration Office (CIPRO). Trusts need to register with the Master in whose area of jurisdiction the greatest portion of the trust assets are situated.
Amendments to companies and close corporations
- This includes a change of directors/ members, addresses, registered name, principal business, etc
Annual return lodgements with CIPC
- An annual return is a statutory return in terms of the Companies and Close Corporations Acts and therefore compliance is COMPULSORY. Failure to do so will result in the Commission assuming that the company and/or close corporation is not conducting business or not intending on conducting business in the near future. Non-compliance with annual returns may lead to deregistration, which could result in the withdrawal of the juristic personality, thus the company or close corporation may cease to exist.
Business consulting (Refer to Aretè Tax Consulting for possible benefits)
- Today’s business environment is dynamic, ever changing and developing at a fierce pace. In order to stay in touch with the market, it is essential to review and implement updated business strategies, action plans, group re-structuring and tax planning strategies. It is critically important to have profitable and well-managed companies as our clients, thus we assist and utilise our expertise and experience in this broad and challenging area to streamline relevant aspects so that our clients can manage their companies in the most functional, effective and optimal way.
Accounting and bookkeeping services
Accounting and bookkeeping services include the systematic recording, analysing, classifying and reporting of financial information and transactions. SARS require taxpayers to store accounting records for at least five years; therefore, quality and accurate accounting records are crucial to minimise risks and optimise planning. Our accounting services assist our clients in analysing their financial performance, updated reports and documentary proof of transactions.
Our professional accounting and bookkeeping services allow our clients to make informed financial decisions, to implement proper financial planning and to be accountable for their financial affairs. Our services inter alia include:
- Monthly/ bi-monthly/ yearly bookkeeping
- Compilations and Independent reviews of Financial statements
- Audit planning
- Management statements and financial analysis
- Statement of assets and liabilities, Income statements
- Financial reporting
- Account reconciliations (Cashbook, Debtors, Creditors, VAT, etc.)
- Interpretation and reporting of financial results
- Accounting officer duties and independent oversight in terms of the Companies Act
- Commissioner of Oaths
- Accounting system implementation
- B-BBEE assurance services and certificates (< R10m)
- Obtaining letters of good standing
- Obtaining tax clearance certificates
Payroll administration and consulting services
Payroll administration and compliance with the relevant legislation are complex administrative tasks and processes. Aspects such as UIF, benefits, pension and medical aid contributions have to be considered and payroll systems and software are needed to process a payroll.
We handle enquiries, reports and payments. Payroll legislation is complex and we handle changes in PAYE, tax codes and regulations with ease. Services include
- Structuring of salaries and assisting in complying with the relevant legislation as an employer.
- Assisting in risk management of personal services providers and independent contractors.
- Assisting in risk management of expatriates
- Monthly payroll and salary/pay slips
- Registration as an employer with SARS
- Registration as employer with the Department of Labour
- Registration as an employer with the Compensation Commissioner
- Calculation, completion and submitting of EMP201 returns (refer to tax consulting for risk management)
- EMP501 reconciliation and issuing of IRP5s
- Declarations with the Department of Labour
- Annual wage return with the Compensation commissioner
Other value added services
Risk management
- The most destructive risks are the risks we do not know about. We will help you identify and understand the tax and financial risks to your business. Thereafter we can assist you in developing and implementing effective risk management strategies and procedures to monitor these risks.
Estate planning
- We do not live forever, and what will you leave behind for your relatives and family? How will your affairs be managed and administered if you are not here to do so? We all agree that paying tax once is unpleasant, paying tax twice is even more unpleasant and will become a reality if your estate is not planned properly. Proper estate planning has many benefits, which range from tax benefits to administration and inconveniency issues. We assist our clients in obtaining these benefits whilst meeting their own personal needs and requirements.