Free State Business 2022
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SPECIAL FEATURE<br />
Establishing a business<br />
in South Africa<br />
South Africa has eased the barriers to doing business for locals as well as<br />
international companies and individuals.<br />
new legislation, no new Close Corporations can<br />
be created but CCs can convert to companies.<br />
Registration of company<br />
The company must be registered with the<br />
Companies and Intellectual Properties<br />
Commission, (CPIC) in Pretoria within 21 days of<br />
the company being started. There are a range of<br />
administrative procedures that need to be fulfilled.<br />
Bank account<br />
A business bank account must be opened in the<br />
company’s name with a bank in South Africa.<br />
South Africa has a sophisticated legal,<br />
regulatory and banking system. Setting<br />
up a business in South Africa is a relatively<br />
straightforward process with assistance<br />
being offered by organisations such as the<br />
Department of Trade, Industry and Competition<br />
and provincial investment agencies like the <strong>Free</strong><br />
<strong>State</strong> Development Corporation (FDC).<br />
South African law regulates the establishment<br />
and conduct of businesses throughout the<br />
country. Tax, investment incentives, regulations<br />
governing imports, exports and visas are uniform<br />
throughout the country.<br />
The particular environment varies from<br />
province to province with regard to the availability<br />
of human and natural resources, the infrastructure<br />
and support services, business opportunities and<br />
the quality of life. In this respect, the FDC can offer<br />
specific advice about the business environment in<br />
the province.<br />
<strong>Business</strong> is regulated by the Companies Act<br />
and the Close Corporation Act, which cover<br />
accounting and reporting requirements. Under<br />
Registration with the receiver of revenue<br />
• As a Provisional Taxpayer<br />
• As a VAT vendor<br />
• For Pay As You Earn (PAYE) income tax payable on<br />
money earned by employees<br />
• For Standard Income Tax on Employees<br />
Registration with the Department of Labour<br />
<strong>Business</strong>es employing staff will have to contact the<br />
Department of Labour regarding mandatory contributions<br />
to the Unemployment Insurance Fund<br />
(UIF). Register with Compensation Commissioner<br />
for Compensation Fund: Files with the Compensation<br />
Fund (in the Department of Labour) for<br />
accident insurance (Workmen’s Compensation).<br />
Registration with the local authority<br />
Relevant only to businesses dealing in fresh<br />
foodstuffs or health matters.<br />
Other procedures<br />
• Checking exchange control procedures (note<br />
that non-residents are generally not subject to<br />
exchange controls except for certain categories<br />
of investment).<br />
FREE STATE BUSINESS <strong>2022</strong> 2021<br />
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