-
What Is a CCMA Dispute and How Does It Work?
Quick Answer What Is a CCMA Dispute and How Does It Work? The CCMA (Commission for Conciliation, Mediation and Arbitration) is the free state body resolving workplace disputes. An employee refers a dispute (usually within 30 days of dismissal), conciliation tries to settle it, and unresolved matters go to arbitration – where most employers lose on procedure, not facts. What this means in plain language Dismissal law in South Africa has two legs: a fair reason (misconduct, incapacity, operational needs) and a fair procedure (hearing, notice, chance to respond). You need both. A guilty employee dismissed without a hearing can still win at the CCMA. For employers the defence file…
-
SARS Tax Debt: How Does a Payment Arrangement Work?
Quick Answer SARS Tax Debt: How Does a Payment Arrangement Work? A SARS payment arrangement lets you pay tax debt in monthly instalments instead of one amount. Apply on eFiling or at SARS with your affordability details. An approved, honoured arrangement stops most collection steps and can restore your Tax Compliance Status; defaulting cancels the protection immediately. What this means in plain language SARS prefers instalments to enforcement. While you honour an arrangement, collection pauses and your compliance status can recover – which is why arranging early beats hiding until the final demand. If the debt is genuinely unpayable, a separate process – the compromise of tax debt – can…
-
How to Close a Company in South Africa (Deregistration)
Quick Answer How to Close a Company in South Africa (Deregistration) To close a company: stop trading, settle or arrange all debts (including SARS), distribute remaining assets properly, then apply for voluntary deregistration at CIPC confirming the company has no assets or liabilities. Simply abandoning the company invites penalties and trouble. What this means in plain language A company is a legal person – it dies by paperwork, not by going quiet. Voluntary deregistration at CIPC requires a declaration that the company is inactive and has no assets or liabilities left. The loose ends that survive closure are tax: final returns, deregistering VAT and PAYE, and settling any SARS balance.…
-
How to Register a Trademark in South Africa
Quick Answer How to Register a Trademark in South Africa Register a trademark at CIPC‘s trademarks office: search the register for conflicts, file form TM1 in the correct classes of goods or services (about R590 per class), wait for examination and advertisement, and receive 10-year renewable protection. Company registration alone does not protect your brand. What this means in plain language A trademark is the only real fence around a brand name or logo. Your CIPC company name stops another company registering the same name – it does nothing against a competitor trading under it. Trademarks are registered per class (45 classes cover all goods and services). A clothing brand…
-
What Is Business Rescue in South Africa?
Quick Answer What Is Business Rescue in South Africa? Business rescue is a legal process under Chapter 6 of the Companies Act: a financially distressed company gets a temporary freeze on creditor claims while an appointed practitioner restructures the business to save it – or at least achieve a better outcome than immediate liquidation. What this means in plain language The company is “financially distressed” when it cannot pay its debts as they fall due, or is likely to hit that wall within six months. Rescue pauses enforcement, puts a practitioner in charge of a rescue plan, and gives creditors a vote on it. Timing is everything: directors who act…
-
How to Get a Spaza Shop Permit (Trading Licence) in South Africa
Quick Answer How to Get a Spaza Shop Permit (Trading Licence) in South Africa A spaza shop needs a business/trading licence from your local municipality under the Businesses Act, plus a health certificate if you sell food. Apply at the municipal licensing office with your ID, lease or landlord consent, and premises details. Fees are modest and set per municipality. What this means in plain language Spaza shops are real businesses in the eyes of the law: the Businesses Act 71 of 1991 requires a licence for selling food and certain goods, and municipalities add their own bylaws on zoning, hours and signage. Registration drives have tightened since the 2024…
-
COIDA for Construction Companies: What Contractors Must Know
Quick Answer COIDA for Construction Companies: What Contractors Must Know Construction companies must register with the Compensation Fund like all employers – but pay higher tariffs because injury risk is higher, and cannot get onto most sites without a current Letter of Good Standing. Principal contractors can be held liable for uninsured subcontractors’ workers. What this means in plain language In construction, COIDA is checked constantly: tenders demand the letter, site agents demand it again at the gate, and principal contractors verify subcontractors because an uninsured subbie’s injured worker can become the principal’s problem. Your tariff depends on your declared work class – roofing differs from painting. Declare honestly: a…
-
What Is POPIA and Does It Apply to My Small Business?
Quick Answer What Is POPIA and Does It Apply to My Small Business? POPIA (the Protection of Personal Information Act) governs how businesses collect, store and use personal information. It applies to every South African business – there is no small-business exemption. The basics: a privacy policy, minimal data collection, reasonable security, and deletion when no longer needed. What this means in plain language If you keep a customer WhatsApp list, employee files or a debtor spreadsheet, you process personal information and POPIA applies. The Information Regulator can fine non-compliance – and customers increasingly ask. Practical POPIA for a small business is not a legal marathon: tell people what you…
-
What Is Provisional Tax and Must I Pay It?
Quick Answer What Is Provisional Tax and Must I Pay It? Provisional tax is not a separate tax – it is paying your normal income tax in advance, in two instalments (end August and end February) with an optional third top-up (end September). All companies are provisional taxpayers, as is anyone earning income that has no PAYE deducted. What this means in plain language PAYE employees have tax deducted monthly; everyone else – companies, sole proprietors, freelancers, landlords – pays it themselves in advance, based on an estimate of the year’s income. The IRP6 return is the vehicle. The trap is the estimate: underestimate by too much and SARS adds…
-
What Is a Small Business Corporation (SBC) for Tax?
Quick Answer What Is a Small Business Corporation (SBC) for Tax? A Small Business Corporation (SBC) is a company that meets SARS‘s qualifying rules – gross income of R20 million or less, natural-person shareholders, not a personal service provider – and in exchange pays reduced tax: 0% up to R99,000 profit, then 7%, 21% and 27% (2026/27). What this means in plain language SBC is not a registration – it is a tax status SARS applies automatically at assessment if your company qualifies. The savings are real: at R400,000 profit, an SBC pays about R25,970 instead of R108,000 at the flat 27% rate. The disqualifiers catch people: investment income above…
South Africa's Business Answer Hub
