Commercial Law

 

 

Yes, several tax incentives and measures exist to ease the tax burden for small businesses

  • Small Business Corporation (SBC) tax: Businesses with a turnover up to R20 million (as of 2013/2014) may qualify for lower tax rates (0% to 28%). Certain conditions apply, such as limits on investment income and personal services rendered.
  • Turnover tax Businesses with basic accounting records and a turnover up to R1 million can opt for a simplified turnover tax system. However, tax is payable even if no profit is made.
  • Venture Capital Company (VCC) incentive Individuals investing in approved VCCs that then invest in small businesses can receive upfront tax deductions. However, capital gains tax applies when shares are sold.
  • Research and Development (R&D) tax incentive This incentive, introduced in 2006, can benefit small firms engaged in R&D activities.

SARS has also implemented other initiatives to simplify tax compliance for small businesses, such as raising the VAT turnover threshold and allowing some businesses to submit VAT returns quarterly instead of bi-monthly.

Yes, you can. But, modern business is complex and so it is best to ask an attorney for advice like VDM Attorneys. 

A trust is a legal arrangement where someone (the founder) transfers assets to trustees, who manage those assets for the benefit of others (the beneficiaries).  This arrangement is documented in a Trust Deed.

A simplified overview

  • Trust Deed The written document outlining the trust's terms, objectives, and how it should operate.
  • Trustees Individuals responsible for managing the trust assets according to the Trust Deed. They have significant powers, similar to those of a company's directors, but must act in the best interests of the beneficiaries and avoid conflicts of interest.
  • Beneficiaries The individuals who benefit from the trust assets.
  • Registration Trusts are registered under the Trust Property Control Act.
  • Legal Personality Generally, a trust does not have a separate legal personality (it's not a separate "person" legally). The trustees act on behalf of the trust.
  • Asset Protection Trust property is protected and kept separate from the trustees' personal assets.
  • Master of the High Court Oversees trust registration and may require trustees to provide security (usually through insurance) for their performance.
  • Limited Disclosure Trusts have limited public disclosure requirements. Audits and annual financial statements are not always mandatory unless the Trust Deed specifies them.


A notary public must draft and attest the Trust Deed, which is then registered with the High Court. The Master of the High Court formally appoints the trustees.  Trustees are generally not personally liable for trust debts unless they've been grossly negligent or committed fraud.

If you're a consumer in South Africa and have a dispute with a business concerning its products or services, this falls under commercial law, specifically the Consumer Protection Act (CPA). The CPA provides the legal framework for protecting your rights as a consumer in these situations, making consumer protection a vital part of commercial law in South Africa.  
Contact VDM Attorneys for assistance with consumer disputes.

In South Africa, a business must register for Value-Added Tax (VAT) if its total sales (turnover) exceed R1 million in a 12-month period.  If you anticipate your turnover will exceed this amount when starting a business, you must register immediately.

If your turnover is less than R1 million, VAT registration is optional (voluntary).  However, if your turnover is less than R50,000 per year, you are not allowed to register for VAT.

Voluntary registration can be beneficial if your business purchases a lot of goods or services from suppliers, as you can then claim back the VAT you paid, potentially reducing the amount of VAT you owe to SARS.

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Commercial Law

Commercial law, also known as business law, mercantile law or trade law, governs the legal rights, responsibilities, and relationships involved in commerce and trade. It covers everything from contracts and transactions to company structures, regulatory compliance, and commercial dispute resolution.

Our commercial law team works with businesses of all sizes to provide clear legal frameworks, reduce risk, and support sound decision-making. Whether you're drafting a contract, restructuring a company, or resolving a dispute, we deliver practical legal solutions that support long-term business goals.

Commercial Lawyer Johannesburg

Commercial Law Services

Our commercial law team offers comprehensive legal support across all areas of business and trade. We work with companies of all sizes—from established corporations to growing ventures—ensuring that their legal matters are managed with precision and foresight.

  • Banking, Insurance and Finance - We advise clients on financial regulations, lending arrangements, credit agreements, securities, and insurance law matters. Our services support compliant, low-risk financial operations and transactions.
  • Contract Law - From drafting and negotiation to enforcement and breach resolution, we help businesses manage all types of commercial contracts—including service agreements, lease agreements, NDAs, and supplier terms.
  • Competition Law - We assist companies in complying with South Africa’s competition regulations, including issues of market dominance, pricing practices, and anti-competitive conduct. We also represent clients in Competition Commission matters.
  • Commercial Disputes - Our attorneys resolve disputes efficiently through litigation, arbitration, and mediation. We handle breach of contract claims, partnership disputes, shareholder disagreements, and other complex commercial conflicts.
  • Commercial Restraint of Trade - We draft and enforce restraint of trade clauses that protect your business from unfair competition and loss of proprietary knowledge. We also advise employees and businesses on the enforceability of restrictive covenants.
  • Corporate Law - We advise on company structuring, governance, shareholder agreements, mergers and acquisitions, and director responsibilities—ensuring your operations align with corporate legal standards and strategic goals.
  • Intellectual Property - We assist in protecting, licensing, and commercialising intellectual property—including trademarks, patents, copyrights, and trade secrets—as part of broader commercial strategies.
  • Sales and Marketing Law - We help businesses comply with advertising standards, consumer protection laws, promotional regulations, and digital marketing obligations. Our guidance reduces reputational and legal risk in the public domain.

Why Legal Certainty Matters in Commerce

Commercial success depends on more than strong products or market demand. Contracts must hold up under pressure. Transactions must meet regulatory scrutiny. And when disputes arise, swift, informed decisions can mean the difference between resolution and risk escalation.

Legal certainty creates space for confident decision-making. It reduces exposure to commercial risk, safeguards business continuity, and builds trust between stakeholders. Whether you’re expanding, restructuring, negotiating a deal, or defending your position in a dispute—clarity in the legal process supports clarity in the business process.

Our commercial lawyers provide that clarity. We help businesses navigate complexity with legal frameworks that are not just compliant, but commercially intelligent.

Choose VDM Attorneys as your Commercial Law Team

Legal problems in business rarely happen in isolation. They tend to cut across contracts, governance, relationships, and regulation. That’s why our approach is integrated, strategic, and grounded in commercial understanding.

The commercial legal support we provide is shaped by an understanding of how businesses operate—fast-moving, complex, and outcome-driven. We bring:

  • Technical depth across corporate, commercial, and regulatory frameworks
  • Clear communication that helps clients act decisively
  • Strong litigation and negotiation skills, when commercial protection becomes contentious
  • End-to-end support—from company structuring to high-value disputes

Our clients value the consistency and clarity we bring to their legal matters. Whether we’re helping you scale, pivot, defend, or close a deal, we work to ensure the law supports—not slows—your business.

Contact us or schedule an appointment to discuss your business’s legal needs and explore how we can support your goals with clarity and care.