Doing Business in South Africa

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The recent years have highlighted a growth trend in the number of businesses and entrepreneurs that are looking to set up business in South Africa. Ever since the country's economy stabilised, there is a good amount of trade and business happening in South Africa, and the country is fast emerging as one of the best business markets in the world.

Whether you are trying to set up a small scale business in the country, or are looking to conduct trade with a large corporation based in South Africa, there are a number of factors to be considered before doing business with South Africa. This guide outlines some of the important things one must keep in mind when looking to do business in South Africa.

Before beginning business with South Africa, it is important to understand the various factors affecting foreigners who wish to conduct business in the country. When a company from outside the country wishes to set up a branch in the country, they are required to first register with the country's authorities. The concerned authority for external companies is the Companies and Intellectual Property Registration Office or CIPRO and this registration must take place within 21 days of the establishment of the office. There are a number of legal guidelines that must be followed in ordered to register with CIPRO, and it is important to understand these before setting up a branch.

If you are setting up a private business in the country, then the guidelines to be followed are slightly different. The first step is to procure a business permit. There are a number of different kinds of private businesses that one can start in South Africa. These include Limited companies, either Public or Private. While these two are the most common, one can also start a Close Corporation. Foreign investors usually choose to start a Private Limited Company since they require fewer formalities. Once the kind of business has been settled on, the business permit can be acquired from the Department of Home Affairs located in the closest city.

If you wish to set up a Private Limited company, there are many factors that you must consider. The first thing to note about these businesses is that they will have to have at least one shareholder and one director. People over the age of 50 are not allowed to be directors. If you are looking to start a public limited company, then the procedure is slightly different and shares from the company will have to be made available to the public.

Bob writes about Bristol freight company and Bristol Freight Forwarding.