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Company Registration in South Africa

Updated:2018-4-8 11:34:32    Source:www.tannet-group.comViews:90

Company registration in South Africa is not that complex. No permits are required for foreigners (apart from business and work permits) and locals to begin a business. Normally a range of administrative procedures have to be complied with. There are several types of companies that you can register. Non-South African Citizens are allowed to open a South African Private Company. 

Types of Business Entities
There are a variety of forms which businesses can take, including private and public companies, close corporations, partnerships, joint ventures and branches of foreign companies (or external companies). Companies and close corporations are legal entities separate from their members. Close corporations can have up to 10 shareholders, all of whom have to be natural persons.

Foreign investors usually use the private version of a company and the branch. Foreign individuals sometimes use the close corporation but use is limited because exchange control regulations are applied more strictly to such entities.

Requirements on Company Registration
1. Company name
In terms of the Companies Act, 2008, a company may be registered with or without a company name. When a company is registered without a reserved name, its registration number automatically becomes the company name. This is the quickest way to register a company.

2. Shareholders and directors
The director(s) and shareholder(s) can be foreign but the public officer of the Company must be a South African resident.

3. Registered address
The registered address of the Company should be the physical business address of the Company in South Africa.

4. Share certificate
A share certificate issued to a foreign shareholder must be endorsed “non-resident” by the bank which the Company opens its account with. There are various supporting documents required to be supplied for the endorsement.

5. Bank account opening
The bank account of the company can only be opened after the Company has been registered. We can provide you with details of a consultant at Standard Bank in South Africa who would be able to assist with opening a bank account and answer any queries you have in this regard.

Auditing and Tax Filing
The new Companies Act, which came into effect on 1 May 2011, introduced different levels of assurance for different categories of companies. All public and state-owned companies require an audit. Private, personal liability or non-profit companies, however, only require an audit when it’s in the public interest,as indicated by prescribed criteria such as the value of the company’s turnover or assets.

Any person who carries on an enterprise and whose total value of taxable supplies (taxable turnover) exceeds, or is likely to exceed, the compulsory VAT registration threshold, must register for VAT. The threshold is currently R1 million in any consecutive 12-month period. VAT may be submitted manually or electronically and payment can be made manually, electronically or at any one of the four major banks.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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