The legitimacy of a business is based on its recognition by numerous stakeholders. The smooth running of a business is guaranteed only when a business entity has complied with the the laws & regulations in place.
Here’s a detailed explanation of the cost of compliance:
Name reservation
Business registration Fee
Appointment of Secretary Fee
Submission of annual returns
Registration for Tax
Payment for drawing up financial statements for submission annually at BURS.
Payment of income of tax if you have employees who earn more than P3000 per month.
Non-compliance results in penalties & sometimes criminal prosecution.
3. CITY COUNCIL
This is the licencing authority for a majority of businesses who provide goods & services, Most businesses need a licence or permit at the city council/ town council within their district.
Each licence has a list of requirements for you to meet.
Each licence application requires that you make payment.
Trading without a licence or permit attracts heavy fines even a prison term.
SPECIALISED LICENCING AUTHORITIES OR REGULATORY BODIES
Some businesses will also require licencing from specific authorities such as:
LSB
REAC
ARC
Business that intend to do business with government need to be recognized for their discipline areas so you would have to register and pay fees to be issued with a registration code.
BANKS
Every business needs to have a bank account in order to operate within the parameters of the law.
To set a bank account you need help from your company secretary (You pay a fee for that help)
Account opening requires a deposit into the account
The existence of an account attracts bank charges.
Compliance is expensive running your business means paying attention to the cost of keeping your doors open.
