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South Africa

SET UP A BUSINESS IN SOUTH AFRICA

South Africa, formally named as the Republic of South Africa, is a country placed at the southern edge of Africa and with the neighboring countries of Namibia, Botswana and Zimbabwe. The South Africa today is one of the most sophisticated and promising emerging markets globally and it is the economic powerhouse of Africa. One of the significant reasons for South Africa becoming one of the most popular trade and investment destinations in the world is due to the country guaranteeing that it can meet specific trade and investment requirements of prospective investors. South Africa has a host of investment incentives and industrial financing interventions that are aimed at encouraging commercial activity and its trade rules favor a further expansion in the country’s growing levels of international trade.

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 Company Formation in South Africa

  • Private Limited Liability Company, managed by just one director and the directors do not need not be South African residents or nationals and one shareholder is required with the minimum capital of ZAR 1
  • Branches of foreign companies are accorded legal status in South Africa by virtue of their registration as external companies but are not recognized as separate legal entities – except for exchange control purposes.

Company Registration in South Africa – Licensing

  • Foreigners may apply for a business permit at a South African Foreign Office or at the Department of Home Affairs’ office. In fact, in certain instances trading without a valid license may be illegal and a punishable offense.
  • In fact, in certain instances trading without a valid license may be illegal and a punishable offense.

Accounting and Tax for Company Registered in South Africa

  • The corporate tax rate is 28% and the capital gains tax rate is 33.3%
  • The Value added tax(VAT) tax rate is 14% and dividend tax rate is 15%
  • Non-residents are taxed on their South African sourced income, and on capital gains from the disposal of immovable property and assets of a PE in South Africa.
Type Limited Liability Company/Branch office
Under South African law, foreigners can own 100%
Share Capital ZAR 1
Directors Minimum One
Shareholders Minimum One
Memorandum and Articles of Association Yes
Can the entity hire expatriate staff in South Africa Yes
Tax Registration Certificate required Yes
Statutory audit required Yes
Secretary No
How long to open Corporate Bank Account 1 week
Timeframe to Incorporation 10-14 weeks
Annual Return Yes
Annual Tax Yes
Access to South Africa
double tax treaties		 Yes

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