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I've been doing business as a Sole Proprietor for a while now under two "divisions" let's call them XYZ Technology and ABC Media.
I make roughly the same amount from both endeavors monthly. I do not plan to grow ABC Media for longer than say the next 5 years as it is a time/skill-based job I don't see scaling very well, but it provides a good stable income for while I am trying to launch XYZ Technology to become my main focus.
Recently, however, ABC Media has gotten more and more corporate clients that require a registered business for it to become a preferred vendor. I've gotten around that with 2 of the corporates but lost the 3rd.
Since ABC Media is not my long term plan, I would like to:
Register XYZ Technology as a Pty (Ltd) and trade as ABC Media towards the clients I serve through that.
As far as I see this is legal, but some clarification would be appreciated from anyone with experience. The Consumer Protection Act 68 of 2008 (“CPA”) specified that in order to use Trading As names, the name needs to be registered as a "Defensive Name" in the name of the person who registered the company. However, I also see that this has not yet been implemented, and thus not necessary? I don't mind however, R250 every two years for the additional name is not a big one.
I'd like to know how I go forward with the banking though? I need both names to appear on the banking details that go out. (One bank account)
This is mainly from a branding perspective as the two endeavors have no intersection. Also, trading as both but registering one legal entity should help the monthly cash flow should one suffer a loss, and simplify the tax, etc.
Side unrelated question (which shows my lack of knowledge): How do I go about paying myself from the registered company? As a director of the company, do I need to register myself as an employee as well and pay a salary or...?
Has anyone done something similar willing to share their knowledge?
I make roughly the same amount from both endeavors monthly. I do not plan to grow ABC Media for longer than say the next 5 years as it is a time/skill-based job I don't see scaling very well, but it provides a good stable income for while I am trying to launch XYZ Technology to become my main focus.
Recently, however, ABC Media has gotten more and more corporate clients that require a registered business for it to become a preferred vendor. I've gotten around that with 2 of the corporates but lost the 3rd.
Since ABC Media is not my long term plan, I would like to:
Register XYZ Technology as a Pty (Ltd) and trade as ABC Media towards the clients I serve through that.
As far as I see this is legal, but some clarification would be appreciated from anyone with experience. The Consumer Protection Act 68 of 2008 (“CPA”) specified that in order to use Trading As names, the name needs to be registered as a "Defensive Name" in the name of the person who registered the company. However, I also see that this has not yet been implemented, and thus not necessary? I don't mind however, R250 every two years for the additional name is not a big one.
I'd like to know how I go forward with the banking though? I need both names to appear on the banking details that go out. (One bank account)
This is mainly from a branding perspective as the two endeavors have no intersection. Also, trading as both but registering one legal entity should help the monthly cash flow should one suffer a loss, and simplify the tax, etc.
Side unrelated question (which shows my lack of knowledge): How do I go about paying myself from the registered company? As a director of the company, do I need to register myself as an employee as well and pay a salary or...?
Has anyone done something similar willing to share their knowledge?