Hello Simon or anyonw else who can help me, i would like to open up an investment company,i'm 22years old and currently studying Bachelor of accountancy 2nd year in Wits, do you guys know of any requlations i must comply with in regard to these or any advice on how to go about starting up my company.
There is a difference betweeen forming a company to make investments and forming a company to give investment advice. Which are you planning as there will be totally different rules and regulations. I presume that it is the former. Will it be a private company (less than 20 shareholders) or public unlisted company with more than 20 shareholders?
Well, i want an personal investment "vehicle" for now, but plan to be a fund manangement company in future, but i have realised that it's better to act in my own capacity, as from a tax point of view i have a lot of allowances and my tax rate is lower than an entities.
Should it be a business of giving personal advice, what regulations would have to be complied with. It is a question i have always wanted to know. What qualifications etc are needed to be allowed to say charge for investment advice.
did you think of the SBC - Small Business Corporation laws on such investment vehicles? I think this could benefit ones investments, especially trading short term, less than R43k (i think) is tax-free, and 10% for anything below R300k(could be wrong on the exact amounts). So did anyone try this yet? is it possible to qualify as a SBC when trading Warrants and/or SSF's?