South Africa has a lot of regulations and probably the best constitution in the world. Because of all these laws and regulations, businesses operating in the country must comply with many mandatory requirements. This is why you must know which compliance certificates you need before operating.
Compliance certificates are proof that your business follows all relevant regulatory requirements. These certificates prove health, environmental and business compliance to any authorities who may inspect your business.
For new business owners, being compliant is imperative. Not only does it protect you and your business from any fines for non-compliance, but it also makes it more likely that funding applications will be successful.
In this article, we look at the compliance certificates you need to know about.
Tax Compliance Certification
All businesses must register for tax compliance through the South African Revenue Services (SARS). When you register with SARS, you will get a tax number and will be required to submit regular tax returns and pay all taxes on time.
Additionally, registering for tax purposes comes with benefits and incentives. You can learn how to do your own taxes or work with a professional tax consultant who will help you ensure that your business is up to date with all things tax.
You will also need to obtain your VAT registration certificate and (if needed) your import and export certificates from SARS.
Note: Import and export compliance certificates are also issued through the Department of Trade Industry and Competition.
Business Registration Certification
Any business started in South Africa needs to be registered with the Companies and Intellectual Property Commission (CIPC). Registering with the CIPC gives your business legal status and it is the most important step in the compliance process.
Typically, smaller businesses such as sole proprietors or freelancers don’t register their businesses. You must ensure you understand the compliance requirements for your chosen business structure.
Health and Safety Compliance Certification
Under the Occupational Health and Safety Act, all businesses must have health and safety compliance certificates. All businesses need to have a health and safety policy as well as certificates to show. This is especially important in businesses that work with consumables and hazardous materials.
B-BBEE Compliance Certification
All businesses operating in South Africa tend to have a B-BBEE certificate. This is meant to show that your business is an inclusive environment for Black, Indian and Coloured individuals. B-BBEE is governed by the Broad-Based Black Economic Empowerment Act. The Act was passed in 2003 and has recently been changed by the Codes of Good Practice for Broad-Based Black Economic Empowerment.
You can get your B-BBEE certificate from any accredited B-BBEE verification agency.
Employment Compliance Certification
When you have employees, by law you need to have registered for the Unemployment Insurance Fund (UIF) and Pay As You Earn (PAYE) through SARS. This is done when you have employed people for more than 24 hours per month. If all is in order, you will get an annual employment equity compliance certificate.
Another certificate you need to register for is the Compensation for Occupational Injuries and Diseases Act (COIDA). This certificate is to prove that you will protect your employees in the case of work-related injuries or diseases. Your COIDA certificate is issued by the Compensation Fund.
Letter/Certificate of Good Standing
A Letter of Good Standing is issued by the Compensation Fund to all businesses registered with the organisation. The certificate proves that there is tangible evidence that you (the employer) have fulfilled all your obligations under COIDA.
Industry-specific compliance certification
There are many industries in South Africa. From mining and manufacturing, to education and technology. And with every industry, there are regulations that businesses need to follow for compliance. Industry-specific compliance certificates are usually obtained from the relevant industry department.
Certificate of Acceptability
The Certificate of Acceptability is a compliance certificate that is issued by your local municipality. The document is given to businesses that handle food and shows that the business is following food safety and hygiene requirements.
The above certificates of compliance are just some of the ones that you need. As we mentioned, you need to research which certificates apply within your industry and business and apply immediately to stay compliant.
For more information on business licences, look at our guide to business licenses in South Africa.
