Funders, corporates and enterprise and supplier development programmes all want to see that a business is properly compliant before they’ll trade with it. Staying on top of a handful of core requirements is what makes that possible.
Register with SARS and understand your VAT obligations
Once your business’s annual turnover exceeds R1 million, you must register as a VAT vendor and collect and pay VAT accordingly. Businesses below that threshold may still register voluntarily in some circumstances.
Know your basic employment law obligations
Familiarise yourself with the Basic Conditions of Employment Act, which sets the baseline for working hours, leave and other employment terms regardless of how small your team is.
Keep up with local municipal requirements
Zoning schemes, noise levels, hygiene standards and other municipal bylaws all affect how and where a business can operate, and falling foul of them can disrupt operations with little warning.
Understand consumer protection requirements
The Consumer Protection Act governs how you advertise your goods, structure contracts with consumers, handle customer data and manage returns under warranty. Getting this wrong exposes a business to real legal and reputational risk.
Match your compliance research to what you’re actually pursuing
If you are applying for funding, research the specific compliance requirements tied to that funding type, since asset finance, equity, invoice discounting and term loans all carry different expectations. If you are pursuing a tender or corporate opportunity, research the compliance requirements specific to that opportunity before applying, not after.
Get expert help where it counts
A corporate finance specialist can help put together an investment proposal and clarify the compliance requirements attached to it. Niche consulting firms that specialise in accessing development funding, grants or institutional loans can identify which funds actually apply to your business and guide you through the application, approval and claims process.
An incubator or accelerator can help too
Most incubator and accelerator programmes build compliance support into their business development offering, which also makes it easier to be accepted into a corporate’s enterprise and supplier development programme down the line.
Frequently asked questions
At what turnover does a South African business need to register for VAT?
Once annual turnover exceeds R1 million, VAT registration becomes mandatory, and businesses must collect and pay VAT accordingly.
Do compliance requirements differ depending on the type of funding a business is pursuing?
Yes. Asset finance, equity, invoice discounting and term loans each carry different compliance expectations, so research the specific requirements for the funding type you are pursuing.
Can a business incubator help with compliance, or is that purely a legal matter?
Most incubator and accelerator programmes build compliance support directly into their business development offering, alongside preparing businesses for enterprise and supplier development opportunities.
Compliance is a prerequisite, not a formality
Funders and corporates use compliance as a genuine signal of a legitimate, well-run business, which makes getting the basics right early a real competitive advantage, not just a box-ticking exercise.
Further reading: The Ultimate Regulatory Checklist for SMEs | South African Revenue Service for official VAT registration requirements
Originally published in March 2019. Updated September 2026 to confirm the current VAT registration threshold and tighten this compliance guidance. The underlying requirements remain current.
