Sole proprietor or (Pty) Ltd?

Five questions to choose between a sole proprietor, a private company (Pty) Ltd and a non-profit company, with what each costs to start and run and the tax on your profit. Free.

Start the 5 questions →A suggestion, the costs and a tax comparison.

The rules in short

Sole proprietor: nothing to register at CIPC, business income on your own tax return, but you are personally liable for the business's debts.
(Pty) Ltd: R175 to register on BizPortal with a name; a separate legal person, with yearly CIPC returns, financial statements and its own tax return. Small business corporations pay 0% on the first R99 000, then 7%, 21% and 27%; dividends tax is 20%.
Non-profit company: for community and charity work; profits may not go to members.

SARS: company and SBC tax rates

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