How To Register A Subsidiary Company In South Africa
South Africa has improved its ranking in the World Bank’s Doing Firm report, making it relatively simple to start a business there. Before you can hire staff or begin your payroll, you must still complete the South Africa subsidiary formation process.
A deposit of 2.5 million ZAR must be made into the company by foreign nationals who wish to establish a South African subsidiary. You must first transfer those funds from your current foreign bank account to South Africa. After six to twelve months of business, you must present proof that South African nationals are employed by your company.
Requirement
- A South African registration number must be obtained by the branch.
- The branch must have a local South African address for registration.
- The operations and compliance of the South African branch are under the control of a South African resident who must be appointed and registered with the CIPC.
- For the branch, a local auditor must be chosen. The international company’s auditors may use the audit, which is primarily for income tax purposes.
- A resident public officer must be chosen by the branch to accept paperwork on the organization’s behalf.
- Subsidiary registration in South Africa involves registering the business and filing the articles of incorporation.
- Complete the Memorandum of Incorporation.
- Make a Notice of Incorporation.
- Register for a bank account
- Enroll in VAT and other taxes.
- Apply for Occupational Injuries and Diseases Compensation and Unemployment Insurance through the Department of Labor.
- Send a request to the District Council.
- You can choose not to reserve your company name. The Companies Act of 2008 allows for the registration of businesses with or without names. If you register your business without reserving a name, your registration number will serve as the name of your company. Despite the fact that this method is quicker, it is still advised that you have a proposed name examined and approved
Is registering a subsidiary company required?
You must register any company you wish to operate as a subsidiary of your holding company. Additionally, if the owners of your Holding Company’s Subsidiary Companies differ, it could be challenging to liquidate a Holding Company due to the multiplicity of owners involved.
What requirements must a corporation meet to become a subsidiary?
The parent firm may have partial or total control over a subsidiary company. The parent firm must possess at least 50% of the subsidiary in order to establish a subsidiary. A subsidiary is referred to as a wholly-owned subsidiary of the parent company when the holding company owns 100% of it.
