OWNERSHIP AND CONTROL THE OWNER TAKES COMPLETE CONTROL OF THE ENTERPRISE PARTNERS HAVE JOINT CONTROL AND AUTHORITY OVER THE ENTERPRISE. MEMBERS HAVE JOINT CONTROL AND AUTHORITY OVER THE ENTERPRISE. ASSOSSIATION AGREEMENT CAN DEFINE ASPECTS OF MANAGEMENT THE ARTICLES OF ASSOSSIATION AGREEMENT CAN DEFINE ASPECTS OF MANAGEMENT FUNCTION UNLIMITED. UNLIMITED. UNLIMITED. LIMITED. A COMPANY HAS TO FULFILL ITS PURPOSE AS PER ITS MEMORANDUM OF ASSOSSIATION. CRITERIA SOLE PROPRIETORSHIP PARTNERSHIP CLOSE CORPORATION PRIVATE COMPANY COST OF FORMATION IN LEGAL TERMS, COSTS ARE VERY LOW. IN LEGAL TERMS, COSTS ARE FAIRLY LOW. IN LEGAL TERMS, COSTS ARE MODERATELY LOW. FAIRLY EXPENSIVE DUE TO LEGAL REQUIREMENTS TAXATION THE PROFITS / LOSSES OF THE ENTERPRISE ARE COMBINED WITH THE OWNERS OVERALL TAXABLE INCOME. THE PROFITS / LOSSES OF THE ENTERPRISE ARE COMBINED AND DISTRIBUTED IN ACCORDANCE TO EACH PARTNERS CONTRIBUTION. EACH PARTNER IS THEN TAXED INDIVIDUALLY. AS A LEGAL PERSON THE ENTERPRISE IS A TAX PAYER, AND SO TAXED SEPRATELY FROM ITS MEMBERS. THE ENTERPRISE IS TAXED AT THE FIXED RATE. AS A LEGAL PERSON THE ENTERPRISE IS A TAX PAYER, AND SO TAXED SEPRATELY FROM ITS MEMBERS. THE ENTERPRISE IS TAXED AT THE FIXED RATE. TRANSFER OF OWNERSHIP UNLIMITED. CAN AT ANY MOMENT, SELL, AND DOWN OR TRANSFER LIMITED. MORE COMPLEX, BUT A PARTNER CAN BE BOUGHT OUT LIMITED. MUST BE IN ACCORDANCE WITH THE ASSOSSICATION AGREEMENT. A MEMBER CAN TRANSFER HIS INTEREST IN THE ENTERPRISE TO THE REMAINING MEMBERS BY SELLING HIS INTEREST TO THE ENTERPRISE LIMITED. THE METHOD OF TRANSFERRING SHARES IN THE PRIVATE COMPANY IS LAID DOWN IN THE ARTICLES OF ASSOSSIATION. TRANSFER IS THEREFORE SUBJECT TO APPROVAL BY THE BOARD OF DIRECTORS. LEGAL RESTRICTIONS NO SPECIAL LEGAL RESTRICTIONS MINIMAL LEGAL FORMALITIES AND REGULATION FAIR AMOUNT OF FORMALITIES AND REGULATION SUBJECT TO VARIOUS LEGAL RESTRICTRICTIONS AND REGULATIONS, BUT THESE ARE LESS THAN IN A PUBLIC COMPANY. REGULATIONS INCLUDE THE TRANSPARENCY OF FINANCIAL REPORTS, AUDITING, ANNUAL RETURNS, MINUTES, REGISTER OF SHAREHOLDERS ETC… SKILLS DIVERSITY LIMITED ONLY ONE PERSON WILL CONTRIBUTE TO THE SKILLS EACH PARTNER WILL CONTRIBUTE SKILLS, KNOWLEDGE AND EXPERIENCE EACH MEMBER WILL CONTRIBUTE SKILLS, KNOWLEDGE AND EXPERIENCE UNLIMITED
Registration Automatic Essential if it is a new design. Apply and pay the registration fees in revenue stamps Registered trademarks have added benefits Duration of protection Lifetime of the creator and for another 50 years after death of creator 15 years – aesthetic 10 years – functional Provisional patent - 1 year Completed patent - 20 10 years Notice to public Necessary to put one’s name, date and copyright statement on original copy and warning notice © Indicated as “registered design” with the registration number Marked with “Patent applied for” or “Patent” with the relevant patent number Indicated as “Registered trademark” and the ® Taxation Most taxes in South Africa are levied by the central government and administered by SARS. The South African government imposes two main types of taxes, namely Direct and Indirect taxes: •Direct taxes Individual income tax – this is an annual tax on the income of individuals, sole proprietorships and partnerships. Company tax – annual tax on income of companies and close corporations Secondary tax on companies – tax imposed on dividends by companies and distributions made by close corporation Tax on dividends from foreign registered or incorporated companies – including retirement funds and insurers •Indirect taxes Value-added tax – an invoice-based value-added tax levied on supplies of goods and services Excise and customs duties – duties on the local production of certain commodities Stamp duties - charges levied on a number of documents in RSA Transfer duty – Transfer duty is payable at rates on transactions which are not subject to VAT, depending on the value of the property. Receiver of revenue The South African Revenue Services (SARS) ensures that tax laws are complied with and collects from each taxpayer the correct amount of tax due. Owners of sole proprietorships and partnerships do not have separate legal personalities and must therefore include the income from the business in their own gross income. Private companies and close corporations must register as tax payers in their own right. Unlike natural persons, a company or close corporation pays tax at a flat rate of 29% on its taxable income for the year of assessment. A small business corporation is defined in the Income Tax Act as follows: • A CC or private company which is not an employment company • Employment companies with at 4 full-time employees for core operations • The entire shareholding or membership is held by natural persons • The annual turnover does not exceed R14mil • Of none of the shareholders or members holds shares in any other company