Business permits in South Africa are issued to foreigners who are looking to conduct their own business. The South African Department of Home affairs issues business permits to immigrants who meet the current criteria and below we provide you with some of the pertinent details:

Applicants with the intention of investing into an established business or establishing a new company / business in South Africa must submit proof stating that the applicant intends to invest or has already invested an amount of:

1. At least 2.5 million Rand in cash in foreign currency, or
2. A capital contribution of at least 2.5 million Rand, or
3. At least 2.5 million in cash in foreign currency and a capital contribution of R500 000,
   into the book value of the business in question.

An applicant for a business permit shall submit:

• A business plan, outlining the feasibility of the business
• Proof or an undertaking that least 5 South Africans or permanent residents
  will be permanently employed in the business
• An undertaking to register with the South African Revenue Service (SARS)

INVESTMENT BELOW ZAR 2.5 MIL

For applicants intending to invest less than ZAR 2.5 mil into the book value of the business we can offer to apply for a recommendation letter issued by the Department of Trade and Industry (DTI) and addressed to the Department of Home Affairs to waiver the capitalization requirement. The DTI issues the same especially if the business falls into one of the following sectors, which are described as being in the national interest:

1. Tourism industry, i.e. guest house businesses
2. Information and communication technologies
3. Chemical and biotechnological industry
4. Clothing and textile industry
5. Agro processing industry
6. Metal and mineral processing industry
7. Automotive and transport industry
8. Crafts industry

FURTHER USEFUL INFORMATION

• Business permits are usually granted for a period of 24 months whereby it lies in the discretion of the issuing regional Department to either grant a longer or a shorter validity of the permit. Before expiry of the business permit the same can be extended.
  
• In this category the business plan is of special importance, so please keep this in mind and let it be done in a professional manner. We will gladly assist you with that!
  
• Besides applying for a business permit various other administrative and organisational issues need to be taken care of which we can assist you with. Just to name a few:
  
  
1. Registration of a company structure with the South African Registrar of Companies
2. Registration with the South African Services for VAT and income tax (PAYE)
3. Registration with the Department of Labour for contributions to the unemployment insurance Fund (UIF)
4. Registering a Trademark, Copyright or Patents
5. Opening a business bank account
6. Insuring your business premises, content and car
7. Searching for suitable business premises

All above topics are covered by our comprehensive and industry leading relocation report which forms part of our service offering should you decide to sign up with us.

Read more about setting up a business in South Africa in our immigration brochure. Click here…(link to brochure downloads)

PERMANENT RESIDENCY APPLICATIONS

A permanent residence permit allows you to stay in South Africa for an unlimited period of time. When being granted this residence permit the holder has the same rights and duties as a South African citizen (excluding the right of participating in the elections).

A permanent residence permit can be renounced if the holder leaves South Africa for a longer period than 3 years.

Self-employed applicants who invest more than ZAR 2.5 mil into the book value of their business may apply directly for permanent residence.

All applicants investing less than the prescribed ZAR 2.5 mil need to first await the outcome of a waiver application which can only be submitted once the Department of Trade and Industry has issued a recommendation letter addressed to the Department of Home Affairs.

After issuance of the permanent residence permit the same shall lapse if the holder fails to proof within 2 years (of the issuance) and 3 years thereafter that the prescribed financial contribution to be part of the intended book value is still invested.

For more information or to make a specific enquiry please use the links below:

Our FREE online eligibility assessment
Request for a call back from one of our dedicated immigration client managers
E-mail us

Our telephone contact details including local lines for our German and United Kingdom clients
can be found on our home page.