South Africa corporate banking options
Healy Consultants Group PLC will be pleased to assist our Clients with opening a South Africa corporate bank account. While the process has its own administrative challenges, and can be time consuming, Healy Consultants will shelter our Client from the these challenges.
South Africa banking system
- The South African banking system has over 80 commercial banks. Some of the more renowned banks include the First National Bank, Standard Bank, Citibank, HSBC and Standard Chartered;
- South African banks offer an excellent range of corporate and personal banking products including multiple currencies, internet and phone banking, checking and savings accounts, debit and credit cards, and wealth management services;
- However, international banks in South Africa offer poor standards of customer care service. Therefore, Healy Consultants recommends our Clients opt for either of the two local banks (First National Bank and Standard Bank) when incorporating a company in South Africa.
- It is mandatory for bank signatories to i) hold a South African work permit and ii) sign documents in front of the bank officer. Consequently, bank signatories must travel to South Africa to open a bank account.
- As a great alternative to local South African corporate bank account, Healy Consultants recommends an international corporate bank account with a top tier bank outside of South Africa. Examples include London, New York, Germany, Ireland, Australia, or Dubai;
- Alternative banks recommended by Healy Consultants will be top tier banks in these countries with excellent internet banking services. Example of our global banking partners include HSBC, Standard Chartered Bank, Citibank, Barclays, ANZ bank, UBS.
Healy Consultants services
- South Africa corporate bank account setup is a difficult task when done through a newly formed company, where shareholders, directors and bank signatories reside overseas. Hence, Healy Consultants will prepare a quality business plan on behalf of our Client to optimize the probability of corporate bank account approval.
- Healy Consultants bank account opening team can open the corporate account within 4 weeks and obtain internet banking approval within the subsequent 3 weeks. Our fee for this service will be US$4,950;
- Following bank account approval, the preferred South African bank will directly email our Client the corporate account number;
- South African banks are willing to provide finance to local companies if the following conditions are met i) a strong business plan ii) experiences of the business owners iii) the last 3 years’ audited financial statements iv) a realistic feasibility study and v) strengths and weaknesses analysis (SWOT);
- Healy Consultants also assist our Clients to secure trade finance services including i) bank guarantees ii) letters of credit iii) finance against trust receipt and iv) documents against payment and against acceptance;
- We will also help our Clients to obtain corporate finance in the form of a loan, overdraft or simply preferential credit terms.
Foreign exchange controls
The South African government imposes foreign exchange controls on funds transferred in and out of the country by resident individuals and companies as highlighted below:
- Non-residents can freely repatriate funds from the country without any government intervention. However, they will still be required to report all investments into the country to the Reserve Bank;
- All fund transfers out of South Africa by residents will require registration of the foreign company with the Reserve Bank, submitting agreements to the South African banks;
- Resident companies can freely remit dividends to non-resident shareholders;
- Non-resident shareholders can freely repatriate sales proceeds of their shares in a South Africa resident company;
- Loans from foreign banks will require resident companies to obtain prior permission from the Reserve bank. Approvals are usually granted easily.
Frequently asked questions
Which banks offer the best business banking solutions for a South Africa company formation?Healy Consultants recommends our Clients to opt for highly reputable banks including First National Bank, Standard Bank, HSBC, Standard Chartered and Citibank. These banks offer excellent customer service facilities to foreign entrepreneurs.
Is online corporate banking deemed a safe option when working in South Africa?Yes. Healy Consultants has prior experience of working in South Africa and hence, only works with the most reputable banks. So, we believe our Clients should feel safe when conducting online banking in South Africa.