Open Source Content Management

Greetings everyone. I'm a bit lost as to what to do next in terms of administration.

In 2010 I registered my company name only, no VAT, worked with my personal bank account and worked from home. Business wasn't good and I got a job offer and did that to pay the bills. Now I've been asked to apply for funding but require a business plan which I'm busy drawing up. Banks tell me I need a Vat Number to open a business account and SARS needs a business banking account to apply. I'm confused??? I need the funding for a PC and Design Internet Cafe to take the next step for my business so I'll need VAT although I don't qualify right now. Plus the forms I need to complete for the funding require VAT Number. That brings me to another question, if you starting up how can you supply a VAT number if you don't qualify because you don't have any business yet?

On the other hand, I've also been offered two partnership deals and they'll provide the funding. The one deal I'll have full control of the direction of the company but I feel that the individual might later say they gave the money so they own the company after all my hard work.

The other deal is I'll have 50% control of the direction company and I've worked with this individual before, we've knocked heads many times because she's a high risk taker whilst I'm a detailed person, a need all the details to foresee any problems and how to handle the damages if it occurs before making a decision.

I'll deeply appreciate any advice.

In order to provide you with specific assistance, there are a few things you need to have in place to have be successful in your application for funding.

These will be:
1. A business plan for the business
2. Details of the amount you are seeking funding for and who is providing the finance
3. Security - what do the funders require in this regard eg. Bond over fixed property, cession of assets, personal surety, etc.
4. Legal entity the business will be using.
5. VAT registration - this is complusory where the anticipated turnover will exceed R1m

If you are able to provide me with a response to each of items, I can provide you with guidance.

Regards,
Greg Wesson
Wesslott Business Solutions
www.wesslott.co.za

Sounds like you need to break this down into a few different topics.

Let's start with the VAT etc. It sounds like you have been misinformed. You don't need a VAT number to open a business bank account. If you were using your personal bank account it would make sense that you were trading as a sole proprietor?

Vat registration is only compulsory once you have a yearly turnover of R 1000 000.

I think you need to speak to your bank again, or change banks!

Didn't see the replies to this message. saw a couple of blank responses which I have deleted

Yes for some reason those posts didn't appear...Thanks for your replies!

I'll try looking at other banks. So if I need funding which requires a VAT number I'll be unable to apply?

I've decided to help get pass the red tape I'll accept both the private funding offers. Those are from people who have money to invest. If we need expanding later we can look into the funding. Do you think that's a good way to go?

Hello Abdurahman

Let me know that you have seen this message and we'll be happy to help you with advice!

One of the guys who I am training to help me out wants to be partners. We have applied for a loan from his friend that deals in personal and business loans. His friend says he needs to register on the Lending Union for R2500. The banks he secures loans from have checked out but we unsure about this Lending Union. Anybody knows anything about this?