Company Formation in South Africa | Business Registration | IMC
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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 dividends tax rate is 15%
  • 3. Non-residents are taxed on their South African source income, and on capital gains from the disposal of immovable property and assets of a PE in South Africa.

TypeLimited Liability Company/Branch office
Under South African law, foreigners can own100%
Share CapitalZAR 1
DirectorsMinimum One
ShareholdersMinimum One
Memorandum and Articles of
Association
Yes
Can the entity hire expatriate staff in
South Africa
Yes
Tax Registration Certificate requiredYes
Statutory audit requiredYes
SecretaryNo
How long to open Corporate Bank Account1 week
Timeframe to Incorporation10-14 weeks
Annual ReturnYes
Annual TaxYes
Access to South Africa
double tax treaties
Yes