The DHA Home Affairs Minister Naledi Pandor was recently quoted as saying that South Africa would be looking at the business permit regulations in order to attract more investment and entrepreneurs into South Africa.
Below we look at the top points to consider under the current legislation:
Business Permit South Africa – investment criteria
The current regulations, for a business permit South Africa, dictate a minimum investment amount of R2,500,000 (two million five hundred thousand rand) into the book value of the business. These funds must be funds that are introduced to the business from a source abroad.
Although many websites make claim to being able to achieve waivers on this minimum investment amount, in reality very very few are ever given and the circumstances must be expectational. Bottom line is the R2.5 million is required.
Business Permit South Africa – Planning and proof of success potential
Not just anyone can run a business and not just any business concept will be successful. The DHA is obviously interested in approving business permits for South Africa to businesses it believes will be successful.
This potential success must be proven by a comprehensive business plan (one of the keys to a successful business anyways) along with the experience and qualifications of the individual running the business by means of a CV.
Business Permit South Africa – Employees
Business permits in South Africa are issued by the DHA with a clear intent of creating jobs for South African citizens of permanent residents.
It is a requirement of a business permit that the business plan clearly demonstrates when and how this will happen, detailing which positions are to be created and salaries. Further it is a condition that proof is supplied that the 5 people are working in the business within the 2 years.
Business Permit South Africa – Company structure
To obtain a business permit for South Africa a suitable company structure must be put in place. Whilst the recent rationale of the company structure options saw the removal of close corporations there are still important decisions to make. Pty Ltd’s are the most obvious company structure but careful consideration needs to be made as to whether Individual Memorandum of Incorporations (MOI) need to be compiled or a standard one will suffice. Further a Pty Ltd is not the only option and companies setting up operations in South Africa should consider an offshore branch.
The company structure dictates things such as black empowerment opportunities, tax issues and also repatriation of funds. A proper consultation should always be sought.
The Intergate Way
For business permits for South Africa, Intergate have long been the go to company. Our track record is envied and our service second to none in terms of our expertise and comprehensive offering.
We provide you with help and support that includes all the permit issues but also advising on:orrect company structure
- Tax issues
- Comprehensive business plan
- Needed undertakings
- Foreign exchange
Request your free call back here for an initial consultation or telephone us + 27 (0) 21 424 2460