Company Registration in South Africa
Healy Consultants Group PLC
12 November, 2014
South Africa company formation is a gateway to the rest of the continent, which has a market of nearly a billion people. It is the economic powerhouse of the African continent, with a GDP of US$348 billion, which comprises approximately 30% of the entire GDP of Africa. Doing business in South Africa can certainly produce significant advantages.
A South African limited liability company (LLC) can easily be set up within ten weeks, and requires a minimum paid-up share capital of US$1. Average monthly office space rentals in South Africa are low at approximately US$1 per square feet. The time frame for opening a company bank account is four weeks. There is limited legal liability, and can be wholly foreign owned. There is a requirement of tax to be filed annually. Annual financial statements, along with statutory audit is required. The South Africa corporate tax rate for a limited liability company is set at 28%. There must be a minimum of one director and one shareholder, who can be of any nationality. Although, a resident of South Africa must be appointed as a public officer. The total South Africa business set up cost in year one is estimated at US$13,280, with subsequent annual costs which include accounting and tax fees to be estimated at US$7,030.
The recent Companies Act No. 71 of 2008, states that companies in South Africa do not have to have a resident director. The directors and shareholders who are appointed can be a resident of any country, and can be of any nationality.
A South African company is an ideal African headquarters as whole foreign ownership is allowed, legal documents are prepared in English and the country boasts the best skilled labor in Africa. A company can also invest in every South African business sector without restriction. In addition, international entrepreneurs who are interested in South Africa company formation can easily obtain bank credit which will help to establish their business. According to the World Bank's Ease of Doing Business 2013, South Africa is ranked number one in the world in terms of ease of getting access to bank credit.
There are 80 commercial banks in South Africa, which comprise of local banks, foreign banks, branches and representatives of foreign banks. There is a wide range of corporate and personal banking products available which include multiple currencies, internet and phone banking, checking accounts, saving accounts, debit and credit cards, fixed term deposit and wealth management services. In respects to obtaining a corporate bank account in South Africa, it is recommended that a limited liability company use First National Bank, a public limited company use Standard Bank, a branch office use HSBC, and a representative office use Citibank. The opening of a corporate bank account for a limited liability company and a public limited company will take four weeks, while for a branch office and a representative office it will take five weeks.
South Africa boasts 71 Double Taxation Treaties which minimizes the withholding tax on income such as dividends, interest or royalties which came into effect in January 2011. Such countries included in the Double Taxation Treaties include: Australia, Canada, USA, China and Singapore. Companies which are headquartered in South Africa are allowed to raise and deploy capital offshore without having to receive exchange control approvals.
South Africa companies can benefit from more incentives if they are incorporated within the Industrial Development Zones. These incentives include 1) no VAT or custom duty 2) 15% government grants on the cost of plant and machinery acquired overseas 3) 15% - 30% grant on the cost of machinery, equipment, commercial buildings and vehicles to local and foreign-owned manufactures 4) compensation to foreign investors who are pursuing South Africa company incorporation for costs of moving new machinery and equipment from overseas. The large quantity of cheap raw materials and labor makes South Africa and manufacturing hub. Skilled labor on average costs US$1,000 per month while unskilled labor costs a mere US$100 per month. Making South Africa one of the most popular locations for the manufacturing of automobiles and automotive.
South Africa is currently the world's most attractive renewable energy market. According to Bloomberg 2012, investment in renewable energy in the country was a staggering US$5.5 billion. The country aims to reduce greenhouse gas emissions by 34% by 2020, and has a great need for more electricity. This makes for a great opportunity for foreign investors interested in pursuing South Africa company registration.
Advantages of SA incorporation: http://www.healyconsultants.com/south-africa-company-registration/
Business Entities in SA: http://www.healyconsultants.com/south-africa-company-registration/setup-llc/
SA resident director: http://www.healyconsultants.com/south-africa-company-registration/resident-director/
SA corporate banking options: http://www.healyconsultants.com/south-africa-company-registration/formation-support-services/
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