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 YOU CAN 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. He must also register himself as a provisional income taxpayer. (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 Gqeberha. Xolile must register with the SARS office in Gqeberha.

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 Employment and Labour in Gqeberha. He can get a Compensation form from the Department of Employment and Labour in Gqeberha, but he must send it to Tshwane. Xolile will need to know:

• What the duties of employers are under the labour laws. (See Formalising the 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 that help small businesses. (See Support for SMMEs)