Is Your Business Really Compliant — or Are You Just Hoping It Is?

In South Africa, many business owners are so focused on surviving — paying staff, managing customers, and keeping the lights on —  they don’t realise how exposed their businesses might be. Legal exposure. Financial risk. Operational blind spots.

And it’s not because they’re reckless. It’s because compliance is scattered across government departments, written in legal language, and rarely explained in plain terms.

Until now.

If you’ve a business, registered or a sole proprietor,  or have even one employee — formally or informally — there are legal obligations you must meet. Not just to tick boxes, but to protect your team, reduce risk, and create a business that’s safe to grow.

Here is a simplified compliance guide.

 The Core Compliance Foundations

Even if you have a start-up, these are the absolute basics every South African business must take care of:

1. Company Registration & Annual Returns

•             Register with CIPC if you operate under a company.

•             File your annual return with CIPC to stay active and avoid deregistration.

2. SARS (South African Revenue Service)

•             Provisional tax: File returns twice a year.

•             Income Tax: File an income tax return annually.

•             VAT: Register if your turnover exceeds R1 million (or voluntarily); file returns monthly, bi-monthly, or semi-annually depending on your situation.

Employer Obligations: If You Have Employees, even with one part-time employee, the following applies:

SARS (South African Revenue Service)

•             PAYE: The submissions are monthly, with a reconciliation twice a year.

Department of Employment and Labour:

•             Unemployment Insurance Fund (UIF): Register and pay monthly contributions.

•             Skills Development Levy (SDL): Pay monthly; can be recovered via SETA training grants. If the annual salaries are over the threshold of R500,000.00.

The UIF and SDL are generally submitted as part of the PAYE declaration to SARS.

•             COIDA: Register for Workmen’s Compensation; file the annual Return of Earnings.

Contracts & Labour Standards:

•             Written contracts for every employee.

•             Payslips, leave records, and overtime logs.

•             Basic conditions posters visible on premises (per CCMA guidelines).

•             A disciplinary and grievance procedure in line with the Labour Relations Act.

Most issues arise because proper documentation isn’t kept. These basics protect you during audits or disputes:

•             Maintain accurate books — even if it’s on Excel or cloud software.

•             Submit all returns on time: VAT, PAYE, UIF, Income Tax.

•             Issue IRP5 certificates and keep payroll reconciliations.

POPIA & PAIA: Your Privacy Duties

If you collect or store customer or staff data — including emails, ID numbers, or payslips — you must comply with:

•             POPIA: Appoint an Information Officer and publish a privacy policy.

•             PAIA: Draft and make available a PAIA manual explaining how people can access the records you hold. This applies whether you’re a registered company or a sole proprietor.

Health, Safety, and Equity (When You’re Growing)

If you have a physical workspace, staff training facility, or factory:

•             Occupational Health & Safety Act (OHSA): Create a safety plan, designate a responsible person, and record all incidents.

•             If you have 20+ employees, form a Health & Safety Committee.

•             If you employ 50+ staff or exceed certain turnover thresholds, you must:

o            Submit an Employment Equity Plan

o            File your annual EE report to the Department of Labour

 Industry-Specific & Location-Based Licences

Depending on where and how you operate, you may need additional:

•             Municipal trading licences (restaurants, hair salons, etc.)

•             Industry licences (e.g., FSCA for financial services, NCR for credit providers)

•             Bargaining council registration, depending on your sector

•             King IV™ corporate governance principles, if you’re scaling or seeking investment (strongly encouraged but not legally required)

Why This All Matters

Non-compliance isn’t just administrative — it carries real cost:

•             Late tax returns trigger penalties and interest.

•             No UIF/PAYE? You can’t access relief funds or legally onboard employees.

•             No COIDA? You’re personally liable if an employee is injured on duty.

•             No contracts or policies? You’re vulnerable to labour disputes.

•             No POPIA/PAIA? You may face fines and reputational damage for data breaches.

SARS, the Compensation Fund, and the Department of Labour all run audits. If you’re not ready, it won’t just be embarrassing — it could be expensive.

What You Can Do Today

1. Build a Compliance Calendar

Use a spreadsheet or app. Set up recurring reminders for VAT, PAYE, ITR14s, CIPC returns, and COIDA filings.

2. Create a Central Compliance Folder

Keep all registration documents, return confirmations, payment proofs, and contracts in one place (physical or cloud-based).

3. Get Help if You’re Unsure

Work with a qualified accountant, labour consultant, or business advisor. You don’t need to know everything, but you do need to know what applies to you.

Running a business without understanding your compliance obligations is like driving with no seatbelt — it might feel fine until you hit a bump.

Compliance is not about fear. It’s about building a strong, legitimate business that supports your people, protects your growth, and gives you peace of mind.

Tick the boxes. Build the business. Sleep better at night.