Solvency Letter
Introduction Lenders will often seek the comfort they require as part of their due diligence in the first instance by considering a borrower’s annual (and management) accounts as well as any other relevant financial information. The lender may seek stand-alone confirmation from the borrower as to its solvency, particularly before a loan agreement is formally…
Income Confirmation Letter
What Is An Income Confirmation Letter? An income confirmation letter is written by an accountant confirming earnings/income of: The purpose of the letter is to provide an independent confirmation of the above-mentioned earnings. Normally the accountant will identify and add up all the drawings made by the owner(s)/member(s) from the company for the private use.…
CIDB status
CIDB Status Have you ever wondered why suddenly your company CIDB status in now showing suspended or expired? Well, we have put together some answers for you for easy of reference. CIDB Status: Active This is the CIDB status that every registered contractor will need to have. It means that the CIDB has successfully processed…
Small Businesses and Tax
What is a small businesses? There are a lot of definitions out there of what is a Small business. A small business takes form of a privately owned corporation, partnership, or sole proprietorship that usually has fewer employees and less annual revenue than a corporation or regular-sized business. The definition of “small business” – in…
Starting a construction company in South Africa
Starting a construction company in SA is relatively easy. We will detail for you some of the basic things that you need to have in place to get started. If you want your construction company to be eligible for public contracts and tenders, you need to follow a few formalities to ensure you are tax…
Non Profit Organisation
What is a Non Profit Organisation? The Non Profit Organisations Act 71 of 1997 states that a Non profit Organisation is ‘a trust, company or other association of persons – established for a public purpose; and the income and property of which are not distributable to its members or office-bearers except as reasonable compensation for…
Administrative Penalty
What is Administrative Penalty? An Administrative Penalty (Admin Penalty) is a penalty in accordance with the Tax Administration Act (TAA). The Act prescribes the various types of non-compliance which are subject to fixed administrative penalties. The penalty is imposed only for non-submissions of tax returns in respect of individuals and companies: For individuals the penalty…
Filing of annual returns
What is an annual return? An Annual Return is a statutory return in terms of the Companies and Close Corporations Acts and therefore MUST be complied with. The purpose for the filing of such annual returns is to confirm whether a company or close corporation is still in business or trading, or if it will…
What to do after company registration?
Congratulations on registering your company. We wish you all the best in your business endeavours. Registering your company is only the first step in managing it. Throughout its life span, a company is required to maintain its information and legal status with the CIPC. Failure to do so may have serious consequences for your company…
Financial aid for close corporations, companies and trusts
Businesspartners is offering financial aid in the form of an unsecured interest-bearing loan of between R250 000 and R1 million coupled with a non-repayable grant of R25 000 per qualifying business. The loan portion will be interest free for 12 months with no repayment obligations during this period. The loan is repayable after 12 months and incurs interest at…
