South Africa corporate banking options
Healy Consultants will be pleased to open a South Africa corporate bank account. It is a time consuming task, and Healy Consultants will shelter our Client from the associated administrative challenges. Unfortunately, to become a bank signatory of a South Africa bank account, it is required to obtain work permit in South Africa. All South African banks will also request the bank signatory to sign in front of the bank officer. Consequently, travel to South Africa is compulsory, no exceptions. As you can appreciate, it is a difficult task to obtain bank account approval through a newly formed company, when shareholders, directors and bank signatories reside overseas. Healy Consultants will prepare a business plan for the bank to optimize the probability of corporate bank account approval;
- 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, Bulgaria, Ireland, Australia, or Dubai. It is a time consuming task and our fee for this service is US$3,950 without travel or US$2,550 with travel. All banks will be top tier banks in these countries with excellent internet banking services;
- The South African banking system boasts 80 commercial banks comprising a mix of local banks, foreign banks, branches and representative offices of foreign 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 telephone banking, checking accounts, saving accounts, debit and credit cards, fixed term deposit and wealth management services;
- However, international banks in South Africa offer poor standards of customer care service. Therefore, Healy Consultants recommends that all of its Clients opt for either of the two local banks (First National Bank and Standard Bank) when incorporating a company in South Africa.
Healy Consultants services
- Healy Consultants bank account opening team can open the corporate account within 4 weeks and obtain internet banking approval within the subsequent 3 weeks. Please note that the bank signatory must be a South African resident. Our fee for this service will be US$1,250;
- Following bank account approval, the preferred South African bank will directly and independently email our Client the corporate account number;
- Healy Consultants can open a local business bank account for a foreign company. Many of our Clients use a local business bank account to receive payments and pay suppliers without the need to register a local company. Our fee for this service is US$3,950.
- South African banks are willing to provide finance to local companies if the following conditions are met i) a strong business plan ii) availability of security iii) experience of the business owners iv) the last 3 years’ audited financial statements v) a realistic feasibility study and vi) project strength and weaknesses analysis (SWOT);
- We 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;
- Healy Consultants will 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 the transfer of funds in and out of the country by resident individuals and companies;
- 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 and waiting 2 – 3 weeks for execution;
- Resident companies can freely remit dividends to non-resident shareholders;
- Non-resident shareholders can freely repatriate sales proceeds of their stake in a South Africa resident company;
- Loans taken from foreign banks will require resident companies to obtain prior permission from the Reserve bank. Approvals are usually granted easily.
Engagement project plan
Healy Consultants will follow the below engagement project plan to secure a successful corporate bank account opening with a Top tier South Africa bank.
Frequently asked questions
Can Healy Consultants provide a bank account opening guide for an South Africa company?Yes. Please refer to the above information regarding banking in South Africa. For our fees, kindly refer to the attached Healy Consultants’ invoice for company incorporation and bank account opening.
Which banks offer the best business banking solutions for a South African company?While there are several corporate bank account options available for a South African company, 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.
What services will be offered to my firm if I open a corporate bank account in South Africa?South Africa’s corporate banking services includes internet banking and telephone banking, checking accounts, savings accounts, debit and credit cards, fixed term deposits and wealth management.
Will my South Africa corporate account offer iBanking/mBanking services?Yes. Banks in South Africa will offer our Clients online banking services.
Immediately after we set up our Client’s account, Healy Consultants will activate the online banking services. As a result, our Client should be able to easily access their account(s) online.
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.