South Africa (also called South Africa, SA, or RSA) is a state in southern Africa. It is a parliamentary republic of nine provinces located in southern Africa. To open a company in South Africa as a non-resident, you must take into account and comply with several requirements. Next, we will analyze how to register a company in South Africa, as well as the features and types of enterprises.
Registration of a company in South Africa: organizational and legal forms
The Companies Law describes the required requirements and steps to establish a company in South Africa. Among the organizational and legal forms, you can choose such as:
Registration of an individual entrepreneur in South Africa
Individual entrepreneurship is managed by one person. It should be borne in mind that an individual entrepreneur is not considered a legal entity.
LLC registration in South Africa
A private company, Pty Ltd, or a limited liability company is treated as a separate legal entity. To register a Pty Ltd in South Africa, you need at least 1 director. There are no residency requirements, which means that a non-resident can open a limited liability company in South Africa.
Registration of a partnership in South Africa
LP registration in South Africa is carried out by 2 or more co-owners who run the business together. Partners also pool their funds to achieve a common goal, and share losses, and gains.
Registration of a small business in South Africa
In most cases, an SME can be formed either by an individual entrepreneur or by a partnership.
Registration of a non-profit company in South Africa (non-profit)
A non-profit company (NPC) must be created by three or more persons. All profits are directed toward promoting the main goal of the NPC. When a company ceases to operate, is dissolved, or deregistered, all remaining assets must be transferred to another non-profit company that has a similar purpose.
Registration of a branch in South Africa
Foreign entrepreneurs who do not wish to register a subsidiary in South Africa can set up a representative office or branch in South Africa. While there are key operational and management differences between these types, the registration process remains the same.
Features of opening a company in South Africa
- Mandatory audit.
- It is necessary to keep and submit accounting reports.
- To establish a South African company, you need to register a local office.
- The minimum number of directors is 2, shareholders are 1.
- The minimum authorized capital is 1 USD.
- No local shareholders or directors are required.
- The appointment of a local secretary is needed.
- Private and public companies are legal entities registered under the laws of South Africa. A private company is the most common type of business registration for foreign investors.
If you want to choose a specific name for your legal entity, you need to check, approve and reserve it.
The terms of registration of an enterprise in South Africa take from 1 month.
Opening a corporate account in South Africa
After the completion of the incorporation process for a company in South Africa, it will be necessary to open an account for a company from South Africa. When opening an account for a company in South Africa, as a rule, the following documentation may be required:
- Declaration of Incorporation and Certificate of Incorporation (Form CK1).
- Originally completed bank letterhead (each bank issues its letterhead).
- Copies of directors/shareholders documents.
- In addition, banks reserve the right to request additional information, such as a description of the business activity or the provision of information about the source of income.
Taxation in South Africa
- VAT: 15%.
- The corporate tax rate is 28%.
- Capital gains tax: 18%.
- Property tax: 1%.
- Income tax: up to 15%.