It requires eight procedures, takes 21 days and costs 7.12% GNI per capita to start a business in South Africa.
The following is a list of procedures required to start up a business
- An agent notarizes company deeds
- Pay duties
- Reserve a company name
- File with the Companies Registrar
- Open a bank account
- File with the office of local Receiver of Revenue (taxes)
- File with department of labour for unemployment insurance
- Fill with compensation fund for accident insurance (Workmen’s compensation)
South African law regulates the establishment and conduct of businesses throughout the country. Tax, incentives, regulations governing imports, exports and visas are uniform throughout the country. What varies from province to province is the environment for doing business – the availability of human and natural resources, the infrastructure and support services, business opportunities and the quality of life.
Registering a business
Several types of businesses may be established:
- Company (private of public)
- Close Corporations
- Sole Trader
- Joint ventures
- Branch office of foreign company
- Business Trusts
(A subsidiary of a foreign company is treated as a South African company)
Further information on the institutional arrangements and information on registering each of these business types may be obtained from CIPRO:
Tel: +27 (0) 86 1843384 or +27 (0) 12 394 9500
Apart from business and work permits, there are no other requirements for foreigners or locals to establish a business in South Africa.
Business is regulated by the Companies Act and the Close Corporation Act, which cover accounting and reporting requirements. There are however a range of administrative procedures that have to be fulfilled.