Company Formation in South Africa

Roadmap

How long does it take to register a Company in South Africa?

• 4-7 working days

What are the steps to register a company in South Africa?

The registration process of a company in Company Formation in South Africa with LegalBison is very simple. There are only 6 steps:

1. Initial consultation and agreement
2. Payment of the full invoice
3. [IF REMOTELY]: Notarization of POA by client
4. Preparation of registration documents
5. Document signed at the notary
6. Official register validity: immediately

Taxes

How high are the corporate income tax in South Africa?

The corporate income tax rate in South Africa is 28%

What Double-tax treaties has South-Africa?

Many countries have bilateral conventions to avoid double taxation and prevent fiscal evasion Algeria, Australia, Austria, Belarus, Belgium, Botswana, Brazil, Bulgaria, Cameroon, Canada, Chile, China, Croatia, Cyprus, Czech Republic, DR Congo, Denmark, Egypt, Ethiopia, Finland, France, Gabon, Germany, Ghana, Greece, Grenada, Hong Kong, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Kenya, Korea, Kuwait, Lesotho, Luxembourg, Malawi, Malaysia, Malta, Mauritius, Mexico, Mozambique, Namibia, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Poland, Portugal, Qatar, Romania, Russia, Rwanda, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Singapore, Slovakia, Spain, Sudan, Swaziland, Sweden, Switzerland, Taiwan, Tanzania, Thailand, Tunisia, Turkey, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States of America, Zambia, Zimbabwe Status: Q1 2021

VAT number

Without VAT number

• Your company will not be eligible to receive VAT refunds, which means everything bought is 15% more expensive
• Your company will not have to file monthly tax returns (prerequisite: no one receives a salary), which means low costs

With VAT number

• Monthly tax returns have to be filed, even if no transactions occur
• A company registered in South Africa generating 1 million ZAR or more in turnover must register for VAT
• A business may also register voluntarily if the income earned in the past 12-month period exceeded 50,000 ZAR
• The standard VAT rate is 15%

Decide first

1. Do you want to buy a ready-made company or start a new one?
2. Can you travel or do you want to do everything remotely?
3. What is your planned business activity?

Speak to our consultants to get a free consultation and guidance on how to choose the best jurisdiction based on your business model.

Documents to provide for company registration in South Africa

• Passport copies (a scan) of all individuals above, also beneficiary owner if applicable
• A Power of Attorney (in case of a remote company registration)
• Certified company documents (in case at least one of the shareholders is going to be a foreign company)

Information needed to get company registration in South Africa

• 3 options of your desired name for the company and a company contact email address
• Names, addresses and emails of all shareholders and board members
• Short description of your companies’ activity

Remote incorporation

• The whole incorporation process can be conducted remotely. No travel necessary. Notarization of documents is necessary
• A Power of Attorney (POA) from (all) partners is needed
• The POA is sent to you by us based on the services you want
• You have to certify the POA by a notary and in some cases legalize it by apostille (some countries need full legalization)
• Once you have the POA on your hands, we double-check, and you send us the original form (physical document!) via courier to the provided address
• South Africa is part of the Hague Convention of the Apostille

Accounting and auditing

Every South African company is liable to file yearly returns

• The company is required to maintain books and prepare financial statements
• Financial statements have to be produced every year
• Accounts have to be held and to be available at any time within South Africa
• Private companies 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

Residential requirements

What are the residential requirements in South-Africa?

• Non-residents of South Africa are allowed to be directors and/or shareholders of a private limited company
• A registered address in South Africa is necessary

LegalBison offers help with all of the above requirements. We assist and are local on ground. Speak now for free with one of our consultants to get your business started.