Compared to some other countries, starting a business in South Africa is very easy for a non resident. No permits are required for foreigners (apart from business and work permits) and locals to begin a business. But even though it is fairly easy compared with other countries, before you are allowed to start a business a range of administrative procedures have to be complied with. 

What you'll find on this page: 

• Registration of a Company
• Other procedures
• Types of businesses

Registration of a Company

Your company must be registered with the South African Registrar of Companies in Pretoria within 21 days of the company being started.

In addition to this, one must register with the following organisations: 

• Registration with the Receiver of Revenue
• As a Provisional Taxpayer
• As as a VAT vendor 
• For Pay As You Earn (PAYE) income tax for employees 
• For Standard Income Tax for Employees

Registration with the Department of Labour Businesses employing staff will have to contact the Department of Labour regarding mandatory contributions to the Unemployment Insurance Fund (UIF).

Registration with the Local Authority Only businesses dealing in fresh foodstuffs or health matters are required to register with the local authority.

Other procedures

There may be other procedures involved in starting a business. Depending on the type of business, these could include: 

• Checking Exchange Control procedures (Please note that non-residents are generally not subject to exchange controls except for certain categories of investment).
• Obtaining approval for building plans 
• Applying for industry and export incentives 
• Applying for import permits and verifying import duties payable 
• Registering as an exporter and applying for an export permit 
• Ensuring Exchange Control compliance when remitting payments overseas

Types of businesses

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.

Branches of foreign companies fall under the Companies Act of 1973 and are required to register as "external companies" with the South African Registrar of Companies in Pretoria. An external company is not required to appoint a local board of directors but must appoint a person resident in South Africa who is authorised to accept services of process and any notices served on the company. It must also appoint a registered local auditor and establish a registered office in South Africa.

Patents, Trademarks and Copyrights Trademarks (including service marks) are valid for an initial period of ten years and are renewable indefinitely for further ten year periods. Patents are granted for 20 years, normally without an option to renew. The holder of a patent or trademark must pay an annual fee in order to preserve its validity. Patents and trademarks may be licensed but where this involves the payment of royalties to non-resident licensors prior approval of the licensing agreement must be obtained from the Department of Trade and Industry. South Africa is a signatory to the Berne Copyright Convention.

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