STATEMENT ON THE DIFFICULTY OF DOING BUSINESS IN SOUTH AFRICA (TSHWANE)
The Congress of the people (COPE) business and professionals Regional Working Committee met on the 18th January 2010.
The committee has taken a principled stand on issues affecting mainly Business and Professionals in the region and ultimately in the country. We recognize that Tshwane region is the Capital, therefore a gateway for small business.
ON CIPRO:
We have come to realized that, it is much more difficult to register a business with CIPRO than it use to be. While a year ago a name could be reserved in one to two days, it now takes close to four weeks to register a name and ultimately to register a company.
We have learnt with disgust that, CIPRO starts the de-registrations of companies and cc's without notifying those cc's and companies owners. The de-registration is done in the name of non-compliance with the lodgment of annual returns. We have come to realize that, most people who have registered cc's have no access to internet, therefore they do not have access to CIPRO website and they are unable to keep up with CIPRO updates. The majority of people who have registered cc do not read the daily news papers. We call on Cipro to inform owners of CC's and Companies on their non-compliance with annual returns. Most people don't even understand what an annual return is and confuse it with SARS Tax returns.
It is also a concern to us that, CIPRO website functionality is getting worse not better. We have learnt that on Monday the 18th of January 2010, CIPRO had to close office at 12:00 due to the malfunctioning of their Website. Most people who come all the way from Western Cape, KZN and Limpopo had to leave without anything in their hands.
We have recognized CIPRO's inhumane manner in which it treats people who assist citizens on registering companies and close corporations, citing the reason that they are the main culprits of fraud. We call on CIPRO to formally train and educate these people who mainly come from poor communities and have managed to establish themselves as business people and consultants. As its social responsibility, CIPRO must have a comprehensive training programme that will turn this sons and daughters of the Soil into real consultants.
ON SARS:
We recognize and learn that, it has become almost impossible to get tax clearance on time to submit tenders and other things. We have come to learn that from the 1st of December 2009, SARS only issues a tax clearance per tender. This is an unfortunate process as at times business owners identify tenders while SARS offices are already closed. This type of system slows the pace of doing business in South Africa, and causes South Africa more harm than good.
We call on SARS, to revert to the original process of issuing bulk tax clearances. There must be other, better ways of saving costs.
ON THE COST OF STARTING BUSINESS IN SOUTH AFRICA:
We have come to notice that, the cost of starting a business in South Africa is at its peak.
While the cost of revenue stamps to register a CC or PTY remains the same, other heavy costs have been added. All business registered need to pay an annual return fee whether they are operating or not. Failure to do this will result in that business being deregistered. It must be noted that, in many cases, Entrepreneurs from poor communities take up to six years to get the business off the ground. The system of annual returns is a great one; however the cost involved must be reduced to at least R10 for non operating businesses.
It must be noted that, SMME still have to get BBBEE certificates for start ups or Exempted Micro Enterprise which charged mainly to amounts like R1000.00 by accountants and BBBEE Rating agencies. This certificate must also be renewed on yearly bases.
Construction start ups also have to register for CIDB, building start up to register for NHBRC etc.
To top it all the service by this departments is not up to scratch. While ministers and DG's in these departments enjoy the comfort of good life, small businesses are feeling the brand.
The Youth Development Unit in Tshwane Region has nothing to show since its establishment.
CONCLUSION:
Congress of the people (Cope) B & P in Tshwane region appeals to government to make things easier for small business. The new administration has come with extreme red tapes that make getting something like a tax clearance an impossible task.
This red tapes promotes fraudulent activities by government officials.
The Government must reduce the cost of doing business by SMME's in SA and also improves on the efficiency of service to SMME's.
Statement issued by Sefu Sekgala on behalf of COPE business and professionals (Tshwane Region), January 24 2010
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