Sole proprietor literally means “the only owner”.
A person, a company or a trust can be the proprietor of a business. For example, a company ABC Elastics (Pty) Ltd runs a business called Special Elastic Suppliers. It trades with that name and is is the owner of that business, so it can be termed the proprietor of the business, even the “sole proprietor” of that business.
But usually when we use the term “sole proprietor” we are referring to an individual human (not a company) who owns/runs a business.
In order to establish your Sole Proprietorship in South Africa, kindly follow the following procedure:
- Trade Name Registration – apply to register your t/a (trading as) name
- Tax Registration – apply for an income tax number for yourself (if you do not have one; this same tax number is used for the business because you are/own the business)
Other registrations for your sole proprietorship include:
- VAT Application – register your business for Value-Added Tax (if needed or if 12-month turnover is R1m or more)
- Annual Work – annual financial statements and tax return – after your first period of trading ending 28 February.
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