Commercial Law

Yes, several tax incentives and measures exist to ease the tax burden for small businesses

• Small Business Corporation (SBC) tax: Businesses with a turnover up to R20 million (as of 2013/2014) may qualify for lower tax rates (0% to 28%). Certain conditions apply, such as limits on investment income and personal services rendered.
• Turnover tax Businesses with basic accounting records and a turnover up to R1 million can opt for a simplified turnover tax system. However, tax is payable even if no profit is made.
• Venture Capital Company (VCC) incentive Individuals investing in approved VCCs that then invest in small businesses can receive upfront tax deductions. However, capital gains tax applies when shares are sold.
• Research and Development (R&D) tax incentive This incentive, introduced in 2006, can benefit small firms engaged in R&D activities.

SARS has also implemented other initiatives to simplify tax compliance for small businesses, such as raising the VAT turnover threshold and allowing some businesses to submit VAT returns quarterly instead of bi-monthly.

Yes, you can. But, modern business is complex and so it is best to ask an attorney for advice.

A trust is a legal arrangement where someone (the founder) transfers assets to trustees, who manage those assets for the benefit of others (the beneficiaries).  This arrangement is documented in a Trust Deed.

A simplified overview

• Trust Deed The written document outlining the trust's terms, objectives, and how it should operate.
• Trustees Individuals responsible for managing the trust assets according to the Trust Deed. They have significant powers, similar to those of a company's directors, but must act in the best interests of the beneficiaries and avoid conflicts of interest.
• Beneficiaries The individuals who benefit from the trust assets.
• Registration Trusts are registered under the Trust Property Control Act.
• Legal Personality Generally, a trust does not have a separate legal personality (it's not a separate "person" legally). The trustees act on behalf of the trust.
• Asset Protection Trust property is protected and kept separate from the trustees' personal assets.
• Master of the High Court Oversees trust registration and may require trustees to provide security (usually through insurance) for their performance.
• Limited Disclosure Trusts have limited public disclosure requirements. Audits and annual financial statements are not always mandatory unless the Trust Deed specifies them.

A notary public must draft and attest the Trust Deed, which is then registered with the High Court. The Master of the High Court formally appoints the trustees.  Trustees are generally not personally liable for trust debts unless they've been grossly negligent or committed fraud.

If you're a consumer in South Africa and have a dispute with a business concerning its products or services, this falls under commercial law, specifically the Consumer Protection Act (CPA). The CPA provides the legal framework for protecting your rights as a consumer in these situations, making consumer protection a vital part of commercial law in South Africa.  
Contact Aucamp Attorneys for assistance with consumer disputes.

In South Africa, a business must register for Value-Added Tax (VAT) if its total sales (turnover) exceed R1 million in a 12-month period.  If you anticipate your turnover will exceed this amount when starting a business, you must register immediately.

If your turnover is less than R1 million, VAT registration is optional (voluntary).  However, if your turnover is less than R50,000 per year, you are not allowed to register for VAT.

Voluntary registration can be beneficial if your business purchases a lot of goods or services from suppliers, as you can then claim back the VAT you paid, potentially reducing the amount of VAT you owe to SARS.