South Africa is a country located at the southern tip of the African continent. It has well-developed financial, legal, and energy sectors, it also has a stock exchange that is the 18th largest in the world.
Given this country’s value, there are several opportunities for investors and entrepreneurs looking to start a business in South Africa.
Why register your business in South Africa
- South Africa has developed an established, diversified manufacturing base that has shown its resilience and potential to compete in the global economy.
- The South Africa Government has developed several policies and passed several laws aimed at relieving the stresses on natural resources from social imbalances and fostering sustainable growth.
- South Africa‘s financial services sector, which is backed by a sound regulatory and legal framework, is outstanding.
- South Africa is the best entry point into the vast African market, and most companies use it to test the waters before a complete dive into Africa.
Business registration in South Africa is also simple as South Africa’s Companies and Intellectual Property Commission (CIPC) regularly updates its service charter to improve the business delivery timelines needed to register businesses in South Africa.
Doing business in South Africa as a foreigner
A foreigner can do business in South Africa but to do this, he/she needs to provide a valid passport copy or South Africa ID document and have a residential address in South Africa. Foreigners who want to do business in South Africa must register a company.
Business forms in South Africa
A preferred Company Structure is the first consideration founder needs to make when registering a new business in South Africa.
Founders need to consider which company structure will work best for the business’s setup and goals.
There are two business forms open to foreigners in South Africa. These are:
- Local Company: the types of companies under this in South Africa are Private (Pty Ltd) and Public Companies (Ltd), Personal Liability Companies (Inc.), and Non-Profit Organisations (NPO). The process of incorporating a local company by a foreigner is similar to the registration of a local company by a citizen but only for the requirements.
- External Company: this includes a branch or representative office. This can be registered for companies with a few levels of activity as this does not normally require incorporation in South Africa.
Business registration requirements in South Africa
The requirements for Registering a Company in South Africa include the following:
Proposed company name.
Firstly, the business should have a name. Choosing a clear, dominant name provides for great marketing and branding efforts. A name that bares relevance to what services being offered should also be kept in mind. After deciding on what the company name will be, the next step would be to reserve the name.
Objectives of the business and physical office address
Before registering the business, you must first give thinking a chance to decide what the business or company is set to carry out. The objective of the business must be entirely legal and not against public policy.
A physical business address is also one of the compulsory requirements for businesses to operate in South Africa.
Directors’ details
For clarity and accountability purposes, CIPC requires that the director’s information be specified on the application for registration.
The following will be required for directors:
- The full name of the director
- Specify director type
- Country of Origin
- Director Status,
- Appointment date.
- Date of Birth
- Cell phone number
- Email Address
- Physical Address, and
- Postal Address.
For foreign directors, an international passport is required. A clear and recent passport photograph must also be provided for each director and officer of the company.
Additionally, the following forms must be initialed or signed and dated by all directors and submitted during registration
- Notice of Incorporation (Form CoR14.)
- Initial Directors of the Company (Form CoR14.1A)
- Registration Certificate (Form CoR14.3)
- Memorandum of the company with share capital (Form CoR15.1)
Upon successful registration of the business, the founder will receive the company registration documents, also known as the COR 14.3 document.
After the business is registered, you may now apply for a business bank account and register with SARS (South African Revenue Service) for tax purposes.
Being one of the top countries in Africa, there are advantages to registering a business in South Africa.
To get started with your ventures in south Africa, let’s go ahead and contact your Damalion expert now.
