South African country comparisons

South African country comparisons

Tax Resident CompaniesSouth AfricaMozambiqueNigeriaKenyaBotswana
Summary at a Glance
Total company engagement set up costs (US$)9,63018,70019,40013,75011,405
Subsequent annual costs (incl audit & tax) (US$)3,4005,8005,1903,4003,430
How long to set the company up?1 month1 month5 weeks1 month2.5 months
How long to open company bank account?4 weeks4 weeks4 weeks4 weeks4 weeks
Issued share capital required to hire expatriatesUS$250,000US$100,000US$62,000US$100,000US$50,000
Corporate bank account locationFirst National BankFirst National BankStandard Chartered BankStandard Chartered BankStandard Chartered Bank
Corporate tax payable %28%32%30%30%22%
Do you travel for company incorporation?NoNoNoNoNo
Legal considerations
Resident shareholder required?NoNoNoNoNo
Resident director required?NoNoNoNoYes
Minimum number of directors11221
Minimum number of shareholders12221
Resident company secretary required?YesYesYesYesYes
Individual shareholders allowedYesYesYesYesYes
Corporate shareholders allowedYesYesYesYesYes
Corporate director(s) allowedNoNoNoNoNo
Public register of shareholders and directorsYesYesYesYesYes
How long to get work permit approved2 months3 months2 months3 months3 months
Tax and accounting considerations
Corporate tax payable %28%32%30%30%22%
Statutory audit requiredYesYesYesYesYes
Annual tax return to be submittedYesYesYesYesYes
Access to how many double tax treaties71911812
Tax exempt free zones availableYesYesYesYesNo
Resident company for local tax purposesYesYesYesYesYes
Withholding tax on international payments15%10%10%5%10%
Can the entity hire expatriate staff?YesYesYesYesYes
VAT rates14%17%5%16%12%
Import and export duties10-20%20%5-20%10-25%8-25%
Monthly Government reportingNoNoNoNoNo
Logistics considerations
Premises lease required before incorporationNoYesYesYesYes
Allowed to sign sales contracts with local clientsYesYesYesYesYes
Allowed to invoice local clientsYesYesYesYesYes
Average monthly salary of skilled labourUS$850US$390US$450US$370US$800
Average monthly salary of unskilled labourUS$250US$220US$250US$170US$200
English spoken by what % of the population5646536145
Literacy rate %93%56.1%61%87.4%81%
Computer literacy rate %52%48%43%45%43%
Office rental per square meter per monthUS$25US$22US$25US$16US$21
Warehouse rental per square meter per monthUS$20US$18US$22US$14US$3
Country rating (out of 100)6035403570
Internet connectivity ratingExcellentFairFairGoodGood
GDP per capita (US$)7,5085791,5558657,191
Population % tertiary enrollment107110831130.15
Global business efficiency index score52%42%48%39%46%
Ease of doing business ranking (lower the better)3913413112159
Population51 million25 million169 million43 million2 million
Unemployment rate30%22%24%40%18%
Inflation rate (2013)6.44.528.28.295.6
GDP 2012 US$ billion$384 billion$15 billion$263 billion$37 billion$14 billion
Average annual growth (2012)2.57.46.64.63.7
Estimate of engagement costsUS$US$US$US$US$
Company formation fees2,4807,85012,9908,7505,500
Company secretary and legal registered office fees1,1003,5002,1001,1001,100
Government fees9501,6502,460950905
Corporate bank account opening1,2502,9501,8502,9502,950
Project management fees for a 4 month engagement3,8502,750000
Estimate of total outgoings in Year 19,63018,70019,40013,75011,405
Draft sales invoice attached

Contact us

For additional information on our African company incorporation services, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon