South Africa actively promotes investment in its economy, giving benefits to businesspeople ready to invest, those benefits include the unique combination of developed-world infrastructure and logistics networks, a diversified and growing emerging market economy offering low sectoral centration risks and a sophisticated banking sector with a major footprint in Africa.
According to World Bank Group – SA are ranked as 84th out of 190 economies in the World Bank. SA’s investment potential lies in its diversity of sectors and industries and wealth of resources such as coal, gold, iron ore, uranium, manganese and chromium. Another benefit of starting a business in South Africa is that you become perfectly positioned to expand your operations into the African market, with South Africa aptly known as being the “gateway into Africa”.
South Africa’s immigration system is regulated by the Immigration Act No. 13 of 2002, this Act facilitates foreign investment and the employment of needed foreign labour as well as enabling the entry of exceptionally skilled or qualified people. Foreign investors or entrepreneurs who are contemplating investing in the South African economy by establishing a business or by investing in an existing business should consider applying for a Business Visa.
How to qualify for a Business Visa
The Business visa is issued for businesses that will enhance national interests. The feasibility of the prospective business venture, and the benefit it would have for the South African economy, must be assessed by the Department of Trade and Industry (DTI) before a Business visa may be issued.
Major Business visa eligibility conditions include:
- As an applicant, you will be required to invest a prescribed financial capital contribution of at least an amount of ZAR 5 million in cash. The capital requirements above may be reduced or waived in respect of the following types of certain industries including information and communication technology, clothing and textile manufacturing, chemicals and bio-technology, agro-processing, metals and minerals refinement, automotive manufacturing, tourism and crafts; and
- An undertaking by the applicant that at least 60% of the total staff complement to be employed in the operation of the business shall be South Africa citizens or permanent residents.
Why is a Business Visa so important?
The aim of a Business visa is to attract foreign investment which is beneficial for economic stimulation, development of human capital and creation jobs.
Deciding what kind of business to establish, where to locate it, and which is the best visa to achieve the desired results can be difficult and a holistic approach taking into consideration the format of the business i.e. branch vs subsidiary, tax implications, resources, visas, banking and forex are all equally important to ensure optimal efficiency and compliance.
We have longstanding practical experience across multiple disciplinaries placing us in the ideal position to facilitate the setting up of a new entity.
Workpermit South Africa is currently the largest independent Immigration Practice in South Africa with a fully remote working team. Our practice provides full Immigration and work visa services for South Africa and Africa, but also incorporates Tax Planning, Dispute Resolution and Compliance services across all tax types, with deeply experienced Tax Attorneys, CA’s and Professional Accountants. We perform CIPC Services, including Essential Services Certificate Applications, Accounting work and sign-off, Forex as well as Employee Remuneration and NED work. We are more cost effective than the big brand providers and exceed quality outcomes due to our niche specialisation and unique adaptability.