How to start a property business in South Africa
If you're serious about investing in property and want to grow the number of properties you own over the years, it's worth considering starting a property business.
This also means if you have a business partner or partners, you can formalise it through your company.
So how do you go about starting a property business?
Read on to find out…
How to get the ball rolling to start your own property business
The first thing you need to consider when starting your own property business
is the type of ownership to go with.
A good option is to open a close corporation (CC). It will make things easier to manage.
In a CC, the owners of the company are referred to as members. Through a CC you need a minimum of one member and there’s a limit of ten members.
A CC is a legal entity. This means the CC is responsible for paying taxes and not one individual.
The process of opening your property business
Here’s what you need to do…
Visit the Companies and Intellectual Properties Registration Office (CIPRO) website
and register as a user.
Register your company name. You’ll need to either download a CK7 (Application for Reservation of Name, or Translated Form, or Shortened Form) or complete it online. CIPRO will conduct checks to ensure the company name isn’t already in use.
This process takes about seven days to complete once CIPRO receive the application and costs R50.
You then need to register your CC by completing a CK1 form (Close Corporation Founding Statement). You can complete this online or download a form to complete.
Make sure you have an accountant sorted out. You’ll need to include the details of your accountant and an original signed letter from him or her agreeing to act for your CC.
You’ll also have to provide the letter you receive confirming the registration of your company name.
This process takes about five days to complete and costs R100.
Once your property business is registered, don’t forget to register with SARS.
So there you have it. How to start a property business in South Africa.
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