Facebook Feed

  • Khamas form People’s Patriotic PartyJune 1, 2023
    BAKANG TIRO editors@thepatriot.co.bw A faction within Botswana Patriotic Front (BPF) aligned to the Khama family is hitting the ground running finalizing formation of a splinter party likely to be led by former MP for Palapye Moiseraele Goya. The Patriot […]
  • Battle for Mhlauli’s multi-millionsJune 1, 2023
    STAFF WRITERS editors@thepatriot.co.bw Three years after the passing of former permanent secretary in the ministry of local government, lands and housing  Elvidge Gaedupe Makhunga Mhlauli, his estate remains unsettled due to dispute between  creditors, beneficiaries and lawyers appointed for […]
  • ‘Women poised to dominate mining in future’- Experts June 1, 2023
    ‘Companies ought to break the barriers for women for them to rise to the top in the sector. Companies need objective quotas in place to give them power. They are the future of mining’- Dr Somolekae BAKANG TIRO editors@thepatriot.co.bw […]
  • PUBLIC TENDER NOTICE: Botswana Unified Revenue Service (BURS)May 31, 2023
    1. THE PROVISION OF BIG DATA IMPLEMENTATION AND DATA ANALYTICS FOR 18 MONTHSTender Closing: 16th June 2023 2. SUPPLIES PROCUREMENT OF CISCO COMMUNICATION AND COLLABORATION EQUIPMENTTender Closing: 16th June 2023 3. PHYSICAL BURS ASSET VERIFICATION, TAGGING AND RECONCILIATION OF […]
  • Vacancy: Choppies Distribution Centre.Pty.LtdMay 31, 2023
    FINANCIAL SERVICES­ – OPERATIONS MANAGER Closing Date: 15th June 2023
  • About Us
  • Advertise
  • Disclaimer
  • Contact Us
  • Login
  • Register
Saturday, June 3, 2023
17 °c
Gaborone
21 ° Tue
22 ° Wed
24 ° Thu
26 ° Fri
The Patriot On Sunday
Advertisement
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
Cart / $0.00

No products in the cart.

  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
The Patriot On Sunday
No Result
View All Result
Home Business

The corporate process

patriot by patriot
January 25, 2021
in Business
245 7
0
Emergency fund planning
491
SHARES
1.4k
VIEWS
ShareShareShare

Owning and running a business requires a lot of work. It is not an easy task, but it is achievable. Compiling a business plan is a good first step towards actualising our business idea and goals. A business plan includes a business profile, goals and objectives of the business, market analysis, and financial projections among others. A business profile presents details of the business such as the business name, company registration details if applicable, details of the shareholders and details of individuals employed by the business. The following section presents the mission or purpose of the business, the vision or long-term goals of the business, the objectives or short-term goals to achieve the vision of the business, as well as monitoring systems to track the progress of the business. A market analysis involves an in-depth investigation of the characteristics of our target market, how our business idea may be received by our target market, any competitors in our market segment, the effects our business idea may have on other markets and the economy, and any sustainable or development activities associated with corporate social responsibility. The financial projections section presents how our business plans to make a profit to keep operating, as well as the calculation of anticipated profits, usually done over a period of the first five years. Once again, a business plan is good first step towards achieving our business goals and increasing our probability of having a successful business. The consideration of adding entrepreneurship to our personal financial planning is a creative way of acquiring additional income with or without going down the traditional route of saving and investing. Therefore, we still have to be mindful that we are at the centre of our now identified corporate financial planning aspirations. We must remember that we will run our business and without us, our business may cease to exist.   

Our financial planning topic for this week is THE CORPORATE PROCESS. There are two ways in which we can own a business entity. It includes building a new start-up business entity or buying an already existing business entity. Buying an already existing business entity has some of the work done for us and building up a new start-up business entity involves a lot more work.   

Business registration

Should we decide to embark on running a business entity that is governed by the Botswana Companies Act, we must legally register our company. We must register our business with the Botswana Companies and Intellectual Property Authority (CIPA). Other than contacting their phone lines, directly accessing their services online (exempting social media platforms) have deemed troublesome. Therefore, we can either physically visit their offices, visit the online Government Portal to know the requirements for company registrations or make use of the services provided by industry consultants to assist us with the start-up process.

CIPA is currently undergoing a transition to reduce physical visits to their offices. They will be soon launching an Online Business Registration System (OBRS) that requires existing businesses to re-register online. Though currently unclear, this transition may affect the change in the ownership process required from undertaking an existing business entity. If you are already the owner of a business, it may bring up emotions of frustration to re-register online when CIPA already has physical copies of your original business application and registration. However, CIPA has confirmed their good news that indeed any business that re-registers online from the 3rd of June 2019 until the end of the transitionary period will not be required to pay their current outstanding annual levy and penalties (usually referred to as annual returns).

Also, there used to be a convenient online platform to check the availability of company names without paying the company name reservation fee submitted along with our company registration forms. We can only hope that the launch of the OBRS may bring it back up into operation in the future.

Corporate tax

Upon the successful registration of our business, we can now register with the Botswana Unified Revenue Services (BURS) to comply with our corporate tax laws. We can find out more information by visiting their very informative website. BURS also has a convenient online E-services platform that can save us time when submitting and paying our corporate related taxes. We can register for these services online and then visit their offices for approval. Be mindful that we can personally register for these services as well to improve the tax efficiency process in our personal financial planning.

Business insurance

With our business registration, corporate tax registration and obtaining the necessary trading licenses, we can explore business insurance. Every business heavily relies on someone or a group of individuals for its success. This may be us (the owners), directors, sales staff or technical professionals. Therefore, it is important to undertake a risk management strategy such as a key person insurance cover to protect our business.

Key person insurance

Key person insurance is a special business insurance cover that a business can take out on behalf of its most valued employees.

Benefits of having a key person insurance cover include:

·      To cover death, severe illness and disability – as a way to acquire a replacement in the event of the death of a valued employee, with consideration to experience, skills, recruitment and training

·      To secure a business banking account overdraft – as the insurance part of the loan repayment agreement

·      Act as a personal guarantee – beneficial to a business that has a business loan. The insurance will pay-out for the business to acquire the deceased key director’s shares instead of them being taken over by the bank.

·      To cover a shareholder’s loan account – in the event of a business having a liquidity problem, the insurance monthly payments can be deducted from the shareholder’s loan account. A shareholder’s loan account is the funds they have invested in the business.

·      To cover a mortgage bond – a business entity with legal identity can own its own assets thus can take out a mortgage loan for business premises in which it operates. Thus, upon the death of a managing director, the insurance will be paid out to cover the property debt.

·      To provide a cash reserve or business emergency fund – some insurers provide a premium payback or avail certain amounts of funds at a later date as part of value addition to their clients. This does not affect the pay-out amount to satisfy the main purpose of taking out the insurance cover.

Other risk management and investment strategies a business can undertake for improved success rates include having a pure business risk insurance policy, a business savings account, the purchase of shares in the stock market and the purchase of an investment portfolio.

We must keep the aspects of our personal financial planning and corporate financial planning separate but considerate of each other. Such as keeping track and noting down how much of our personal funds we use for our business. This is very important because any personal funds we use for our business can be recorded as a donation, business loan or investment in our personal and business records. Know that the concepts of donations, loans and investments have various benefits in personal and corporate taxation planning.  All the best with exploring the initial corporate process involved in corporate financial planning.

Related

Tags: corporate

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
  • Khamas form People’s Patriotic PartyJune 1, 2023
    BAKANG TIRO editors@thepatriot.co.bw A faction within Botswana Patriotic Front (BPF) aligned to the Khama family is hitting the ground running finalizing formation of a splinter party likely to be led by former MP for Palapye Moiseraele Goya. The Patriot […]
  • Battle for Mhlauli’s multi-millionsJune 1, 2023
    STAFF WRITERS editors@thepatriot.co.bw Three years after the passing of former permanent secretary in the ministry of local government, lands and housing  Elvidge Gaedupe Makhunga Mhlauli, his estate remains unsettled due to dispute between  creditors, beneficiaries and lawyers appointed for […]
  • ‘Women poised to dominate mining in future’- Experts June 1, 2023
    ‘Companies ought to break the barriers for women for them to rise to the top in the sector. Companies need objective quotas in place to give them power. They are the future of mining’- Dr Somolekae BAKANG TIRO editors@thepatriot.co.bw […]
  • PUBLIC TENDER NOTICE: Botswana Unified Revenue Service (BURS)May 31, 2023
    1. THE PROVISION OF BIG DATA IMPLEMENTATION AND DATA ANALYTICS FOR 18 MONTHSTender Closing: 16th June 2023 2. SUPPLIES PROCUREMENT OF CISCO COMMUNICATION AND COLLABORATION EQUIPMENTTender Closing: 16th June 2023 3. PHYSICAL BURS ASSET VERIFICATION, TAGGING AND RECONCILIATION OF […]
  • Vacancy: Choppies Distribution Centre.Pty.LtdMay 31, 2023
    FINANCIAL SERVICES­ – OPERATIONS MANAGER Closing Date: 15th June 2023
The Patriot On Sunday

© 2022 Copyright The Patriot On Sunday - Inspired by Search Mart.

Navigate Site

  • About Us
  • Advertise
  • Disclaimer
  • Contact Us

Follow Us

No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders

© 2022 Copyright The Patriot On Sunday - Inspired by Search Mart.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?