What constitutes a bona fide retailer?

What constitutes a bona fide retailer?

SHARE

To become a bona fide retailer the business must be registered with Companies and Intellectual Property Registration Office (Cipro). The business must also register with SARS for Value-Add-Tax (VAT), and finally, if you are seeking credit facilities with suppliers you must have a clean credit record.

The first steps to take

One of your first decisions when starting a business as a retailer will be whether to operate as a sole trader (under your own name) or register the business under its own name (as a close corporation, partnership, or company). To become a retailer the legal company that you can form can be: private or public limited liability company, external company (i.e. a branch of a foreign company), partnership, trading trust or a sole trader.

The Basics First

After you have registered your business, you need to ensure that various registrations are in place. Contact the South African Revenue Services to register as a: provisional tax payer (If you company is a CC or Company) and register the company as a taxpayer.

Trading licences

Only certain enterprises, such as liquor stores and arms dealers, require a licence to trade in South Africa. If you own a legally registered company, you have to pay a Regional Service Council (RSC) levy. Even if you don’t employ any full-time staff you are still required to register the RSC in the area in which you operate.

Entrepreneur
Entrepreneur Magazine is South Africa's top read business publication with the highest readership per month according to AMPS. The title has won seven major publishing excellence awards since it's launch in 2006. Entrepreneur Magazine is the "how-to" handbook for growing companies. Find us on Google+ here.