The Department of Home Affairs has finally gazetted the new settled amounts required to start a business in South Africa.
Within the gazette are lists of business types that qualify for a reduction or waiver, and a list of businesses that are considered undesirable for a business visa is also included.
What is the minimum investment for a business visa?
The business visa investment amount is up from R2.5 million to R5 million. The R5 million investment must be used to empower a new business or an existing business, and must originate from outside South Africa. Alternatively you can make an equivalent capital contribution of new machinery or equipment of the equivalent value.
Which businesses are deemed undesirable for a business visa application
The types of business that are declared undesirable for South Africa for a business visa are:
- Businesses that import second-hand motor vehicles into South Africa for exporting to other markets outside South Africa
- The exotic entertainment industry
- Security Industry
Can a business visa applicant apply for a waiver?
There is a list of businesses that may qualify for reduction or waiver of capitalisation. Some of these business types include ICT, green economy industries, boat building, textiles, tourism, oil and gas, consumer goods, chemicals and plastics, creative and design, agro-processing, and electro-technical.
Whist there is much criticism of the new immigration legalisation, some justified, we do now have a comprehensive list of business visa applicants who may apply for waivers as well as the new minimum investment amount.