Are you a foreigner wanting to start a business in South africa? Well if you are, you will have to have some money. The Department of Home Affairs will require you to bring in at least 2.5 Million Rand into South Africa within the first two years.
This does seem strange, considering that very successful buisnesses are started with much less (Bill Gates surely did not have 300.000 US Dollars when he started working out of his garage). Just think. Microsoft now employs 60.000 people.
I know examples of companies that have started their business with as little as 50.000 Rand and now employ 20 people after 2 or 3 years. In another 3 to 4 years it might be 50 or 60 employees. Now all of these employees go out and pay taxes and spend their money, creating jobs themselves (through spending their salaries).
We had to turn down many business permit applications of people who wanted to do exactly this. Now thinking, there could have been potentially 2.000 jobs created in the last year that were not created. And that is just with people that I have dealt with.
At least temporary residency permits could be issued to these applicants to see how these busiensses go. If nobody is employed after 2 years, just do not issue a new permit. Simple as that, but at least potentially there will be thousands of new jobs created in South africa
Monday, February 2, 2009
Thursday, June 7, 2007
Starting a business in South Africa
Starting a business in South Africa
When starting a business as a foreigner in South Africa there are certain rules and regulations which apply. Immigration regulations state several things, which apply for a foreigner wanting to run his own business in South Africa.
Regulations:
- Investment of 2.5 Million Rand out of foreign funds (app. 260.000 Euros)
- Employment of 5 South African Citizens within the first two years
- Financial Projections of the business have to be met
- Registration with the South African Revenue Service
The investment amount of 2.5 Million Rand can be waived though. There are certain business sectors where the investment amount does not apply.
- Tourism
- Mining and Steel
- Arts and Crafts
- Transportation
- Textile
- Biological and Chemical Technologies
- Agricultural and Food Production
If your business falls under one of these seven sectors, the investment amount can be waived. Therefore, the sum of 2.5 Million rand does not have to be invested. A smaller amount of 15.000 Euros from foreign funds (which can also be a combination of cash and assets) will be sufficient to start the business.
For more information, visit our relocation website, contact us or send an email.
When starting a business as a foreigner in South Africa there are certain rules and regulations which apply. Immigration regulations state several things, which apply for a foreigner wanting to run his own business in South Africa.
Regulations:
- Investment of 2.5 Million Rand out of foreign funds (app. 260.000 Euros)
- Employment of 5 South African Citizens within the first two years
- Financial Projections of the business have to be met
- Registration with the South African Revenue Service
The investment amount of 2.5 Million Rand can be waived though. There are certain business sectors where the investment amount does not apply.
- Tourism
- Mining and Steel
- Arts and Crafts
- Transportation
- Textile
- Biological and Chemical Technologies
- Agricultural and Food Production
If your business falls under one of these seven sectors, the investment amount can be waived. Therefore, the sum of 2.5 Million rand does not have to be invested. A smaller amount of 15.000 Euros from foreign funds (which can also be a combination of cash and assets) will be sufficient to start the business.
For more information, visit our relocation website, contact us or send an email.
Company Registrations
When opening up your own business and trading in South Africa, you have to be registered with CIPRO (Companies and Intellectual Properties Registration Office). CIPRO has an index of all registered companies. In order for any company to be registered, an accounting officer has to be appointed. If you need to find the same, our network of business will be able to assist us just write an email to finance@sa-shipping.com.
The first step when registering is to find out what kind of company you would like to register. As there are different types (e.g. Closed Corporation, Pty Limited), you have to determine what kind of company is the best for your venture. Should you need help with the same, contact us.
The registration process is as follows. First, you have to determine a name for your company. The name of the company is then reserved with CIPRO. If there are any conflicts because of existing companies with the same or similar names, the name reservation will be rejected.
Once the name has been approved, the second step will be to register the company. Once the company is registered, you will receive your registration papers. The company does not have to trade straight away and can remain dormant for the time until it starts trading.
The first step when registering is to find out what kind of company you would like to register. As there are different types (e.g. Closed Corporation, Pty Limited), you have to determine what kind of company is the best for your venture. Should you need help with the same, contact us.
The registration process is as follows. First, you have to determine a name for your company. The name of the company is then reserved with CIPRO. If there are any conflicts because of existing companies with the same or similar names, the name reservation will be rejected.
Once the name has been approved, the second step will be to register the company. Once the company is registered, you will receive your registration papers. The company does not have to trade straight away and can remain dormant for the time until it starts trading.
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