Glossary

South African business is full of abbreviations. Here is what they mean, in plain words.

Registration and companies

BizPortal

The government website where you register a company yourself. www.bizportal.gov.za(external link)

CIPC

Companies and Intellectual Property Commission. The government body that keeps the register of companies and trade marks.

CoR 14.3

Your company registration certificate. Proof the company exists.

CSD

Central Supplier Database. The list you must be on to sell to government.

MOI

Memorandum of Incorporation. The rulebook of your company. CIPC gives you a standard one free.

Pty Ltd

Private company. A separate legal person from you.

Sole proprietor

You, trading as yourself. Not a separate legal person. No company registration needed, but you still need to register with SARS for tax.

Beneficial ownership filing

A free CIPC filing naming the real humans behind a company. Compulsory.

Annual return

A yearly filing with CIPC to confirm the company still exists. Not a tax return. Both are required.

Customer code

A six-character CIPC account ID you need before you can file anything with CIPC.

PIS

Public Interest Score. A points calculation done each financial year end that decides whether your company needs an audit, an independent review, or neither.

Owner-managed company

A company where every shareholder is also a director. It gets the lightest financial reporting obligations.

AFS

Annual Financial Statements.

FAS

Financial Accountability Supplement. A short financial summary filed with the CIPC annual return instead of full statements, where that is allowed.

Audit

Full checking of the financial statements with a positive opinion. Expensive. Rarely required for a one-person company.

Independent review

A lighter check giving limited assurance. Cheaper than an audit.

Compilation

An accountant prepares the statements from your records with no opinion on them. Usual route for a small owner-managed company.

CoR 40.5

The CIPC form used to apply to reinstate a deregistered company.

Bona vacantia

Property with no owner, which can pass to the state. What can happen to a deregistered company's assets.

Solvency and liquidity test

The section 4 check a board must pass before paying a dividend: assets exceed liabilities, and the company can pay its debts for the next 12 months.

Resolution

A written record of a decision by the directors or shareholders. Needed even when you are the only one.

Registered name

The company's legal name on its CoR 14.3. Must appear with the registration number on all company documents.

Trading name

A name you market under that is different from the registered name. Allowed, but the registered name and number must still appear on documents, shown as "trading as".

Trading stock

Goods you hold to sell. Unsold stock at financial year end is brought into account at cost under section 22 of the Income Tax Act, so buying stock does not by itself reduce that year's profit.

Floor plan finance

A lender funds a dealer's stock. The lender becomes title holder on eNaTIS until each vehicle is settled.

Tax

SARS

South African Revenue Service. The tax authority.

eFiling

SARS's online system. www.sarsefiling.co.za(external link)

ITR12

The annual income tax return for individuals, including sole proprietors.

ITR14

The annual income tax return for companies.

IRP6

The provisional tax return. Submitted twice a year.

Provisional taxpayer

Someone who earns income with no PAYE deducted, so they pay tax in advance during the year. Every business owner is one.

PAYE

Pay As You Earn. Tax deducted from a salary by an employer.

EMP201

The monthly payroll return declaring PAYE, UIF and SDL. Due by the 7th of the following month.

EMP501

The twice-yearly reconciliation of your EMP201 submissions.

SDL

Skills Development Levy. A payroll levy that only applies once your payroll passes a threshold.

Dividends tax

20% tax on dividends, withheld and paid over by the company.

Deemed remuneration

An old PAYE rule for private company directors, repealed with effect from 1 March 2017. Many websites still describe it as current. Directors' PAYE is now based on actual remuneration.

Loan account

The record of money moving between you and your company outside salary and dividends. Credit means the company owes you. Debit means you owe the company.

Deemed dividend

Where a company lends money to a shareholder interest-free or below the SARS official rate, the shortfall is treated as a dividend and taxed at 20%.

Official rate of interest

The rate SARS publishes for judging whether a loan is low-interest. 7.75% per annum from 1 December 2025.

Tax threshold

The income level below which you owe no income tax. R99,000 for people under 65 in 2026/2027.

Turnover tax

A simplified tax for micro businesses, charged on sales rather than profit. 0% on the first R600,000.

Turnover

Total sales, before any costs. Not profit.

Taxable income

Profit after allowable expenses. This is what income tax is calculated on.

SBC

Small Business Corporation. A company that qualifies for reduced tax rates starting at 0%.

VAT

Value-Added Tax, 15%. Only charged by registered vendors.

Vendor

A business registered for VAT.

Input tax

VAT you paid on purchases and can claim back. Only if you are a vendor.

Output tax

VAT you charged customers and must pay to SARS.

Notional input tax

A VAT claim allowed when you buy second-hand goods from someone who is not a vendor. Important for vehicle dealers.

VAT264

The form both buyer and seller sign so a notional input tax claim is valid.

Tax invoice

An invoice issued by a VAT vendor with specific required fields. Only vendors may issue one.

Assessed loss

A loss carried forward to reduce tax in a future year.

Ring-fencing (s20A)

A rule that can stop you using a business loss against your salary.

Compliance

POPIA

Protection of Personal Information Act. South Africa's data protection law.

Information Officer

The person legally responsible for POPIA in your business. For a solo owner, you. Must be registered with the Information Regulator.

Information Regulator

The body that enforces POPIA. inforegulator.org.za(external link) Official

PAIA

Promotion of Access to Information Act. Sits alongside POPIA.

CPA

Consumer Protection Act 68 of 2008.

ECTA

Electronic Communications and Transactions Act 25 of 2002. Governs online selling.

Implied warranty

A guarantee the law puts into every sale, whether you write it down or not. Six months, under CPA s56.

Voetstoots

Afrikaans for "as is". A clause sellers used to avoid liability for defects. It no longer protects a business selling to a consumer.

Cooling-off period

The right to cancel and get a refund without giving a reason. Seven days for most online purchases.

B-BBEE

Broad-Based Black Economic Empowerment.

EME

Exempted Micro Enterprise. Turnover under R10 million. Uses a free affidavit instead of a paid certificate.

QSE

Qualifying Small Enterprise. Turnover between R10 million and R50 million.

Commissioner of Oaths

A person who can witness a sworn affidavit. Free at any police station.

UIF

Unemployment Insurance Fund. Only applies once you have employees.

COIDA

Compensation for Occupational Injuries and Diseases Act. Workplace injury cover. Only applies once you have employees.

Licensing

COA

Certificate of Acceptability. The compulsory permit for any premises handling food.

EHP

Environmental Health Practitioner. The municipal official who inspects food and health premises.

R638

The 2018 regulation setting hygiene rules for food premises. Replaced R962.

R146

The 2012 regulation on food labelling and advertising.

Businesses Act licence

A municipal trading licence required for food, health and entertainment businesses.

Zoning certificate

Municipal confirmation that your premises may legally be used for your kind of business.

NRCS

National Regulator for Compulsory Specifications. Issues Letters of Authority for certain imported products.

LOA

Letter of Authority. Permission from the NRCS to sell certain regulated goods.

SAHPRA

South African Health Products Regulatory Authority. Regulates medicines and medical devices.

NCR

National Credit Regulator. You must register with them before extending credit.

FSP

Financial Services Provider. A business licensed under FAIS to give advice on, or sell, financial products. Anyone who does this must hold an FSP licence or work as a representative of a licensed FSP.

FAIS

Financial Advisory and Intermediary Services Act. The law behind FSP licensing.

PSIRA

Private Security Industry Regulatory Authority.

NHBRC

National Home Builders Registration Council.

CIDB

Construction Industry Development Board.

Vehicles

eNaTIS / NaTIS

The national traffic information system. Every vehicle and owner is recorded here.

BRNC

Business Register Number Certificate. Lets a company own and register vehicles.

TRN

Traffic Register Number. The equivalent for non-legal persons: sole proprietors, trusts, partnerships, churches.

Proxy

The named person authorised to handle vehicle transactions for a business.

ABR

Application for Business Registration. The form used to apply for a BRNC.

RC1

The vehicle registration certificate.

RLV

Application for Registration and Licensing of Motor Vehicle. The buyer's form.

NCO

Notification of Change of Ownership. The seller's form. Lodge it the day you sell.

MTN1

Application for a motor trade number.

Motor trade number

Lets a dealer drive unregistered stock on public roads.

Title holder

The party with the right to sell. If the vehicle is financed, this is the bank, not the seller.

Owner

The party recorded as owner on eNaTIS. Can be different from the title holder.

RWC / CoR

Roadworthy Certificate, or Certificate of Roadworthiness. Required when a vehicle changes ownership.

PrDP

Professional Driving Permit. Needed for heavy vehicles and passenger transport.

GVM

Gross Vehicle Mass. Over 3,500 kg brings extra rules.

VIN

Vehicle Identification Number.

Logbook

The record of business kilometres SARS requires before allowing a travel claim.

Working from home and getting paid

Home enterprise / home occupation

The municipal category allowing a small, quiet business in a house without special permission. Conditions apply.

Consent use

Municipal permission for a business use beyond what your zoning allows by default.

Body corporate / HOA

The management body of a complex or estate, with its own rules on top of the municipality's.

Geotag

Location data hidden inside a photo. Switch it off in your camera settings before photographing stock at home.

POP

Proof of payment. A screenshot or document showing a transfer was made. Easy to fake. Never release goods on one.

Reflected / cleared

The money is actually in your account balance. "Pending" is not reflected.

PayShap

An instant bank-to-bank payment that arrives in seconds and cannot be reversed. System limit R50,000 per payment; your bank sets its own lower limits.

ShapID

A phone number or ID number linked to a bank account so people can pay you without typing account details.

Immediate payment / RTC

Older instant payment options. Also arrive quickly, usually at a higher fee.

Overpayment scam

A "buyer" pays too much on purpose and asks for the difference back. The original payment was never real.

OTP

One-time PIN from your bank. Never share it with anyone, for any reason.

SABRIC

The banking industry's fraud body. www.sabric.co.za(external link) Official

Look, feel, tilt

The Reserve Bank's three-step check for a genuine banknote.

Money and documents

Quote / quotation

A price offer, valid for a stated period. Not yet a sale.

Invoice

A demand for payment after goods or services are supplied.

Credit note

A document that cancels or reduces an invoice already issued.

Proof of payment

The bank confirmation a customer sends. Not the same as money in your account. Wait for the money.

Cash book

The spreadsheet recording every rand in and out.

Small Claims Court

A court for small civil claims where no lawyer is needed. Limit R30,000 from 1 August 2026, up from R20,000. Only a natural person may bring a claim. A company cannot sue here, though it can be sued here.

FICA

The Financial Intelligence Centre Act. The reason banks demand proof of address.