Business Entities In South Africa
Private and public firms, close corporations, partnerships, joint ventures, and branches of foreign enterprises are just a few of the different forms that businesses can take (or external companies). Companies and closely held corporations have independent legal identities from their members. Close corporations are limited to having a maximum of ten shareholders, all of whom must be natural individuals.
Foreign investors typically employ the branch and private form of a corporation. Foreign nationals occasionally use the close corporation, but utilization is constrained since exchange control laws are stricter for these companies. The Companies Act of 1973 applies to branches of international corporations, and they must register as “external companies” with the South African Registrar of Companies in Pretoria.
Copyrights, Patents, and Trademarks
Trademarks (including service marks) have a ten-year initial validity period and an unlimited number of subsequent ten-year renewal periods. Typically, there is no possibility to renew a patent after its initial 20-year term. A yearly fee is required to maintain the validity of a patent or trademark by the holder.
Patents and trademarks may be licensed, but if doing so requires paying royalties to non-resident licensors, the Department of Trade and Industry must first approve the licensing arrangement. The Berne Copyright Convention is ratified by South Africa.
Work and Business Permits For International Citizens
A visitor to South Africa on vacation is not eligible to submit an application for a work visa or a permit to engage in self-employment. In order to apply for these permits at the South African Consulate, he or she would need to return to their home country.
- Work Permit
The Department of Home Affairs will assess whether the Department of Labour has been contacted, whether the position has been widely advertised, and whether the potential employer is able to demonstrate that he or she made an effort to find a suitably qualified local employee as well as that the prospective employee is suitably qualified and has the necessary experience before deciding whether or not to grant a work permit. Favorable attention will be given to members in the immediate family, such as a father hiring his son.
- Business Permit
In addition to having enough money to maintain themselves and their families, foreign nationals who want to start their own business or a partnership in South Africa must be able to spend at least R2,5 million in the venture. The money must come from outside of South Africa, be able to be transferred there, and be the applicant’s (i.e., come from the applicant’s own bank account).
Additionally, the company needs to employ South Africans. Proof that the company is employing South African citizens or permanent residents—aside from the employer’s family—must be shown after six to twelve months. The sole place to apply for a work visa for self-employment is at the South African Consulate in the applicant’s home country. The processing charge is $166 USD.Any application for a business permit extension may be submitted locally. R425 is the processing charge for each passport bearer. Some nations must also pay R108 for each return visa. The Department of Home Affairs has a list of the nations to which this rule applies.
How To Start Your Own Business In South Africa
South Africa makes it incredibly simple to launch a business. With the exception of business and employment permits, no licenses are needed to start a business for foreigners or locals. The norm calls for adhering to a number of administrative procedures.
