Free State Business 2021

SPECIAL FEATURE
Establishing a business
in South Africa
South Africa has eased the barriers to doing business for locals as well as
international companies and individuals.
new legislation, no new Close Corporations can
be created but CCs can convert to companies.
Registration of company
The company must be registered with the
Companies and Intellectual Properties
Commission, (CPIC) in Pretoria within 21 days of
the company being started. There are a range of
administrative procedures that need to be fulfilled.
Bank account
A business bank account must be opened in the
company’s name with a bank in South Africa.
South Africa has a sophisticated legal,
regulatory and banking system. Setting
up a business in South Africa is a relatively
straightforward process with assistance
being offered by organisations such as the
Department of Trade, Industry and Competition
and provincial investment agencies like the Free
State Development Corporation (FDC).
South African law regulates the establishment
and conduct of businesses throughout the
country. Tax, investment incentives, regulations
governing imports, exports and visas are uniform
throughout the country.
The particular environment varies from
province to province with regard to the availability
of human and natural resources, the infrastructure
and support services, business opportunities and
the quality of life. In this respect, the FDC can offer
specific advice about the business environment in
the province.
Business is regulated by the Companies Act
and the Close Corporation Act, which cover
accounting and reporting requirements. Under
Registration with the receiver of revenue
• As a Provisional Taxpayer
• As a VAT vendor
• For Pay As You Earn (PAYE) income tax payable on
money earned by employees
• For Standard Income Tax on Employees
Registration with the Department of Labour
Businesses employing staff will have to contact the
Department of Labour regarding mandatory contributions
to the Unemployment Insurance Fund
(UIF). Register with Compensation Commissioner
for Compensation Fund: Files with the Compensation
Fund (in the Department of Labour) for
accident insurance (Workmen’s Compensation).
Registration with the local authority
Relevant only to businesses dealing in fresh
foodstuffs or health matters.
Other procedures
• Checking exchange control procedures (note
that non-residents are generally not subject to
exchange controls except for certain categories
of investment).
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