WHAT YOU NEED TO APPLY FOR GOVERNMENT FUNDING IN SOUTH AFRICA
What you need to apply for government funding in South Africa, the requirements for specific government instruments will differ depending on the specific grant or incentive.
However, it’s important that all businesses looking to access funding be compliant with all relevant regulatory and statutory requirements such as be registered with the CIPC and registered for tax with SARS.
Additional requirements to access government funding are BBBEE and financial compliance, including annual financial statements, management accounts and tax clearance.
“Record keeping is essential if you would like to access developmental finance in the future. You need to ensure that you have a strong bookkeeping administrative system, accountants that would ensure you remain tax compliant and provide you with regular management accounts and annual financial statements,” says Rawjee.
Rawjee is the founder of Uzenzele Holding, a niche consulting firm that specialises in helping entrepreneurs access development funding in the form of government grants, incentives or loans from institutions like the Department of Trade and Industry (DTI), Industrial Development Corporation (IDC), National Empowerment Fund (NEF), and Small Enterprise Finance Agency (SEFA).
Below are the most common requirements for applying for funding.
- Basic business plan
- Feasibility plan
- Strategic plan
- Trading licence/ permit to trade or business licence (if applicable)
- Cash flow projections
- Outstanding debtors (i.e. customers who owe you money)
- Up-to-date management accounts (i.e. income statement, balance sheet and cash flow statement)
- Latest annual financial statements
- Latest VAT statement
- Last three/six months’ bank statements
- Tax clearance certificate
Besides these documents, they will ask for the following supporting documents to confirm statutory compliance and to validate the information on funding applications:
- ID documents of owners
- Marriage certificates of owners (where applicable)
- Company registration documents
- Office lease or mortgage agreement
- Shareholder agreements
- Share register
- Proof of business address
- Relevant business licences, accreditations or registrations