Xolile lives in Noupoort. He wants to start a fish and chip shop. He is not sure whether he will start the shop in the kitchen at home, or whether he can rent a little room from the church nearby. He will be employing his wife and his brother. His sister’s child will work in the shop on a Friday afternoon after school. His wife’s friend Nomonde said she will make meals in her kitchen every day. He will pay her for the number of plates of food he sells every day and give the rest of the food back to her. Xolile wants to know what he needs to do to start the business.

What Can You Tell Him?

Tell Xolile that he should be a sole trader and explain what this means.
(See: Sole trader or sole proprietor [owner])

If Xolile sells the food from his home, he does not need a licence for his business. But if he sells food from the church building, he must apply for a business licence from his municipality. (See: Business Licences)

Xolile should open a bank account and ask the bank for a cheque book. He must also register himself as a provisional income tax payer. (See: Income Tax)

To find out at which SARS Xolile must register, look at the list of SARS. Find the big towns nearest to Noupoort, and see whether Noupoort is one of the districts under the town. Noupoort falls under Port Elizabeth. Xolile must register with the SARS office in Port Elizabeth.

Xolile will be employing people and must register as an employer for SITE/PAYE tax, UIF, SDL and Compensation for Occupational Injuries and Diseases.
(See: Registrations as a new employer)

His wife cannot claim UIF. Also his sister’s child works for less than 8 hours a week and cannot claim UIF. He must therefore not deduct UIF from their wages.

Xolile must register with the Department of Labour in Port Elizabeth. He can get a Compensation form from the Department of Labour in Port Elizabeth, but he must send it to Pretoria.

Xolile will need to know:

• What the duties of employers are under the labour laws.
  (See: Formalising the Employment Relationship with Employees)

• How to fill in forms, filing forms and write out cheques.
  (See: Administration Skills for Small Businesses)

• Contact numbers of organisations which help small businesses.
  (See: Support for SMMEs)