How to incorporate company in South Africa?
Tetra Consultants’ ultimate guide on South Africa company incorporation is tailored to help our international clients fully understand the whole process. Before you decide to open a company in South Africa, Tetra Consultants advises you to read through the following comprehensive guide as requirements and regulations are stated clearly to help you fully understand the process of South Africa incorporation.
Simply put, we can break down our South Africa company formation engagement into four different phases:
- Planning & strategy
- Bank account opening
- Staying compliant
Prior to South Africa company incorporation, you need to understand that there are multiple requirements and steps to take so that the newly-established company will be legally compliant. Tetra Consultants will advise you of all regulatory requirements to ensure all parties are clear of the steps to take throughout the engagement.
On average, you can expect to own a South African company and a corporate bank account within 2 months depending on the business activity and corporate structure.
1. Planning & strategy
- The first step to understanding how to incorporate a company in South Africa is to choose the correct business entity. The myriad of business form options may leave one in a dilemma. Determining the optimum business entity to adopt is no easy feat. After considering your long-term goals as well as the advantages and disadvantages of each business structure, Tetra Consultants will recommend a suitable business entity.
- This recommendation will also be made based on the type of business activity, tax obligations, and nationalities of your shareholders and directors. Generally, for most clients, Tetra Consultants will recommend incorporating a company limited by shares which is also recognized as Pty. Ltd.
- Once confirmed, Tetra Consultants reserves your preferred company name with the South Africa Companies and Intellectual Property Commission (CIPC) for 6 months.
- Before Tetra Consultants move with the South Africa company incorporation, you are required to provide a list of necessary KYC documents. Some of these documents include the names of directors and identification proof.
- Once you have understood South Africa company incorporation procedure, Tetra Consultants will proceed to draft the company’s Memorandum of Incorporation. Tetra Consultants will also provide assistance for the preparation of a set of other documents including a certified identity copy of the applicant, certified copy of identity of directors, certificate of name, and power of attorney.
- Based on South African Company Law, a company secretary and registered office are necessary for South Africa company incorporation. As such, Tetra Consultants will also provide you with a company secretary and office. The address will be used to manage process service requests and official notices. An application to incorporate will be filed by the proposed registered agent to the Registrar.
- Once the aforementioned steps are completed, Tetra Consultants will proceed to register company in South Africa by filing the documents such as the Memorandum of incorporation with the Companies and Intellectual Property Commission (CIPC) online portal.
- After receiving approval, Tetra Consultants will courier the Certificate of Incorporation, Memorandum and Articles of Association, China company registration certificate, and other corporate documents to your preferred address. You will also be notified of your registration number.
- Simultaneously, Tetra Consultants will also assist you in acquiring the relevant South African business licenses. For example, we assist international clients who are looking to set up a forex business in the country for acquiring a South Africa forex license.
3. Bank account opening
- Simultaneously, Tetra Consultants will proceed to open a corporate bank account for your newly incorporated South Africa company depending on your business goals and objectives. You can leverage on our extensive banking network and expect to receive your account numbers within 4 weeks.
- Tetra Consultants will contact multiple reputable international banks or South Africa’s local banks and present your business to the respective relationship manager and compliance team.
- In most cases, the directors and shareholders are not required to travel. However, if travel is required, we will have a representative accompany you to the bank meeting. Alternatively, our team will negotiate with the banks to conduct a conference call instead or request a waiver.
- Additionally, we would also assist you in preparing the set of documents required for corporate bank account opening including a business plan for the entity. Moreover, if required by the banks we would also assist in translating the documents into the South African official language.
- Following that, Tetra Consultants will courier the internet banking token and access codes to your preferred addresses.
4. Staying compliant
- Tetra Consultants will assist you in registering with the respective tax authorities following the formation of your new South African corporate home. our team of dedicated consultants will continue to ensure that all services necessary for your company’s successful operation are well taken care of.
- Our team of dedicated consultants will prepare your company’s financial statements, corporation tax returns, and bookkeeping for you on a timely basis.
- Corporation tax will be imposed on both resident and non-resident businesses. As such a company incorporated in South Africa, deriving income from or outside the country will be imposed corporate tax at the flat rate of 28%. Additionally. All the businesses in South Africa will have to pay Value added tax at the rate of 15% if exceeded the respective value of providing taxable goods & services.
- Tetra Consultants will assist you to file income tax returns and audited financial statements with the appropriate department.
Contact us to find out more about how to complete South Africa company registration. Our team of experts will revert within the next 24 hours.