South African country comparisons in 2022

Tax Resident Companies South Africa Mozambique Nigeria Kenya Botswana
Summary at a Glance
Total company engagement set up costs (US$) 14,180 20,700 21,150 20,500 23,455
Subsequent annual costs (incl audit & tax) (US$) 6,450 5,800 10,610 5,260 14,730
How long to set the company up? 1 month 1 month 5 weeks 1 month 2.5 months
How long to open company bank account? 4 weeks 4 weeks 4 weeks 4 weeks 4 weeks
Issued share capital required to hire expatriates US$250,000 US$100,000 US$62,000 US$100,000 US$50,000
Corporate bank account location First National Bank First National Bank Standard Chartered Bank Standard Chartered Bank Standard Chartered Bank
Corporate tax payable % 28% 32% 30% 30% 22%
Do you travel for company incorporation? No No No No No
Legal considerations
Resident shareholder required? No No No No No
Resident director required? No No No No Yes
Minimum number of directors 1 1 2 2 1
Minimum number of shareholders 1 2 2 2 1
Resident company secretary required? Yes Yes Yes Yes Yes
Individual shareholders allowed Yes Yes Yes Yes Yes
Corporate shareholders allowed Yes Yes Yes Yes Yes
Corporate director(s) allowed No No No No No
Public register of shareholders and directors Yes Yes Yes Yes Yes
How long to get work permit approved 2 months 3 months 2 months 3 months 3 months
Tax and accounting considerations
Corporate tax payable % 28% 32% 30% 30% 22%
Statutory audit required Yes Yes Yes Yes Yes
Annual tax return to be submitted Yes Yes Yes Yes Yes
Access to how many double tax treaties 71 9 11 8 12
Tax exempt free zones available Yes Yes Yes Yes No
Resident company for local tax purposes Yes Yes Yes Yes Yes
Withholding tax on international payments 15% 10% 10% 5% 10%
Can the entity hire expatriate staff? Yes Yes Yes Yes Yes
VAT rates 15% 17% 5% 16% 12%
Import and export duties 10-20% 20% 5-20% 10-25% 8-25%
Monthly Government reporting No No No No No
Logistics considerations
Premises lease required before incorporation No Yes Yes Yes Yes
Allowed to sign sales contracts with local clients Yes Yes Yes Yes Yes
Allowed to invoice local Clients Yes Yes Yes Yes Yes
Average monthly salary of skilled labour US$850 US$390 US$450 US$370 US$800
Average monthly salary of unskilled labour US$250 US$220 US$250 US$170 US$200
English spoken by what % of the population 56 46 53 61 45
Literacy rate % 93% 56.1% 61% 87.4% 81%
Computer literacy rate % 52% 48% 43% 45% 43%
Office rental per square meter per month US$25 US$22 US$25 US$16 US$21
Warehouse rental per square meter per month US$20 US$18 US$22 US$14 US$3
Country rating (out of 100) 60 35 40 35 70
Internet connectivity rating Excellent Fair Fair Good Good
GDP per capita (US$) 7,508 579 1,555 865 7,191
Population % tertiary enrollment 107 110 83 113 0.15
Global business efficiency index score 52% 42% 48% 39% 46%
Ease of doing business ranking (lower the better) 39 134 131 121 59
Population 51 million 25 million 169 million 43 million 2 million
Unemployment rate 30% 22% 24% 40% 18%
Inflation rate (2013) 6.4 4.52 8.2 8.29 5.6
GDP 2012 US$ billion $384 billion $15 billion $263 billion $37 billion $14 billion
Average annual growth (2012) 2.5 7.4 6.6 4.6 3.7
Estimate of engagement costs US$ US$ US$ US$ US$
Company formation fees 2,480 7,850 9,690 8,750 5,500
Company secretary and legal registered office fees 1,200 3,500 3,950 2,200 4,500
Government fees 2400 1,650 1,610 100 155
Corporate bank account opening 4,950 4,950 4,950 4,950 4,950
Project management fees for a 4 month engagement 0 2,750 0 0 0
Estimate of total outgoings in Year 1 14,180 20,700 21,150 20,500 23,455
Draft sales invoice attached View invoice PDF View invoice PDF View invoice PDF View invoice PDF View invoice PDF

Contact us

For additional information on our African company incorporation services, please contact our in-house country expert, Mr. Kunal Fabiani, directly:
client relationship officer - Kunal