Main Characteristics and the basic rules of Company registration in South Africa
Taking your existing business to a foreign country can be ideal but comparing the countries and picking apt one for this need can be tough. If you want to expand business in a country with ample opportunities, South Africa can be good. Since it became a democratic country in 1994, the economy of the country has grown and the overall atmosphere has become quiet suited for business expansion and growth. You may opt for investing in South Africa but seeking services of expert consultants can be helpful. Feel free to check out our South Africa Company Formation package.
The govt of South Africa has realized the importance of foreign investments to improve economic growth and also they have made some reforms. The relaxed norms have made the country more viable for foreign investors. In the last decade, several companies from European countries and the USA have invested in South Africa.
Since the economic changes have come relatively late into South Africa, the foreign investors still have plenty of grounds to explore. You can start a venture in the country that may have been successful in the western world but is absolutely new here. This may lure you to expand venture to South Africa. However, you will surely benefit by seeking our South Africa Company Formation package.
There are a few hiccups for foreign investors but those are not exactly deal breakers. The instances of crime and corruption are not on alarming scale any more. Entities like the World Bank and World Economic Forum have rated South Africa high for ease of doing business. Even the Johannesburg Stock Exchange is among top notch stock exchanges of the world. It is known for world class regulation and risk management. These factors have led to boost in investor confidence.
You will not face too many hassles when setting up any business in South Africa. The requirements and documentation required for such needs are not extensive. Getting permits for constructions and approvals for loan are not very lengthy. The sophisticated banking sector, robust transport network and high speed web access setup in the country make things viable for potential investors.
You will not face serious problems in setting up a venture in South Africa. However, it is still recommended that you seek services of veteran consultants. The BRIS group can make things simpler for your venture expansion in South Africa. Call us to know about our South Africa Company Formation package.
|South Africa Company Formation||Financial Advantages|
|Taxation:||Small business corporation where tax 10%|
|Double Taxation Treaty Access:||Yes Treaty Access with many countries|
|South Africa Tax Information Exchange Agreements:||Yes, South Africa signs Exchange Agreements|
|Account Filing Requirements:||No Annual Financial Statements and Tax Return in SA for offshore companies operating only from tax-agreement countries. (Annual Financial Statements and Tax Return must be submitted in SA only for offshore companies operating from non-tax-agreement countries (and/or from South Africa).|
|Annual Return Filing Requirements:||Yes annual return/ reporting requirements|
|Audit Requirements:||Yes audit required.|
|South Africa Company Formation||Registration Requirements|
|Share Capital:||ZAR 50,000 Minimum paid up share capital ZAR 1|
|Classes of Share Available for South Africa company formation:||Registered shares, bearer shares, shares of no par value, preference shares, redeemable shares and shares with or without voting rights are permitted.|
|Bearer Shares:||Not Allowed|
|Registered Office Required:||Yes, required and must be maintained in South Africa|
|Shareholders:||Minimum number is one|
|Directors:||Minimum number is one. Can be any nationality and need not be resident in South Africa. Corporate directors are allowed.|
|Your Company language:||English|
|Name of your Company must be ended:||Pty/Ltd,“(Proprietary) Limited”; Limited|
|Documents required for South Africa company formation:||A certified copy of your passport or ID and proof of your residential address dated less than 3 months. Only needed for foreigners: Original Certified Copy of Passport of each foreign director need to be posted in duplicate(x2). Letter Stating of non SA citizen with signature (sample can be provided on request) in duplicate(x2).|
|South Africa Company Formation||Restrictions|
|For South Africa company formation you cannot use words in your company names without justification:||“Bank”, “Trustee Company”, “Assurance”, “Building Society”, ”Trust Company”, “Royal” etc|
|Restrictions on Trading:||No trade restrictions|
|Not permitted without a licence:||Fund management, insurance, Banking, reinsurance, assurance, trust management, collective investment schemes, trusteeship business provision.|
|South Africa Company Formation||Confidentiality and Security|
|Publicly Accessible Records:||No public register of company officers (Directors, Shareholders, Secretary)|
|Nominee Shareholders and Nominee Directors:||Yes, Allowed|
|Disclosure of Beneficial Ownership to Authorities:||No|
|Meetings of Directors and Shareholders to be held:||Anywhere|
|Stability:||Very good steady jurisdiction and highly regarded reputation.|
|About South Africa|
|Capital city:||Pretoria, Cape Town, Bloemfontein|
|Region:||A country on the southernmost tip of the African continent.|
|Political System:||Parliamentary republic|
|Governing corporate legislation:||Companies Act 2008|
|Type of Law:||Common & Civil mixed|
|Currency:||South African rand|
|Language of Legislation and Corporate Documents:||English|
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.