South Africa Company Formation |
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South Africa company formation is a legitimate way for international business people to conduct business within the region and internationally. Two popular types of South African companies are the Limited Liability Company (PTY) and the Close Corporation. The following information will help to determine whether South Africa company formation is the optimum corporate structure to fulfill your international business objectives: |
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Advantages of South Africa Company Formation |
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| 1. | A South Africa close corporation is appealing for small businesses because it is faster and easier to incorporate. It is not required to register Articles of Association, and is comprised of members rather than shareholders or directors. Furthermore, the financial statements of a close corporation do not undergo an annual audit. |
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| 2. | South Africa company formation is cost-effective because of low government registration fees and the absence of a minimum capital requirement. For more information refer to our South Africa Company Set Up page. |
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| 3. | 100% foreign ownership of a South African company is permitted. A minimum of one shareholder and one director is required, and they may be the same person. The shareholder and director need not be resident in South Africa. |
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| 4. | South Africa has a Free Trade Agreement with the European Union (EU) which provides 95% of South Africa’s exports with duty-free access to the EU in the industrial goods and agriculture sectors. |
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| 6. | After South Africa company formation, Healy Consultants can open a corporate bank account with one of the world's leading retail banks, including HSBC, Standard Chartered and Citibank. For a wider overview of our services and capabilities, visit our Other services to support South Africa incorporation page.
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Disadvantages of South Africa Company Formation |
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| 1. | South Africa suffers from a poor international perception, reflected in its 55th place ranking in the 2009 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. Moreover, South Africa is negatively ranked as the world's 73rd freest economy in the Heritage Organisation's 2010 Index of Economic Freedom a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets. |
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| 2. | A South African company is liable to a corporate tax on profits of 28% for income above R300,000 ($40,000) and an additional 10% Secondary Tax on Companies (STC) on net dividends. Also, the Value Added Tax (VAT) rate on most supplies and imports is 14%, although certain goods are exempt from this rate. |
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| 3. | A South African limited liability company is required to submit audited annual financial statements to the government. |
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| 4. | After company formation in South Africa, details of shareholders and directors can be obtained from the office of the registrar. |
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| 5. | According to the World Bank's Doing Business 2010 Survey, South Africa is the world's 34th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business. It is also the world's 45th most competitive economy, according to the World Economic Forum's Global Competitiveness Report 2009-2010. |
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| Contact Us | |
For additional information on South Africa company formation, email email@healyconsultants.com or telephone us at (+65) 6735 0120. |
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