Foreign companies wishing to establish a branch in South Africa usually register as an external company. To do this, a company must register with the Companies and Intellectual Property Registration Office (CIPRO) within 21 days of establishing their office. For more information, visit CIPRO’s website.

In order to establish a private business in South Africa, one must be in possession of a business permit. For more information on business permits and the necessary requirements visit the Department of Home Affairs.

The most common types of business enterprises in South Africa fall under the following headings: Private companies Pty (Ltd); Public companies (Ltd); Close corporations.

Most foreign investors set up as a private company, as they require the least amount of annual formalities. They must have at least one director and shareholder and membership is restricted to 50. The directors do not need not be SA residents or nationals.

Public companies are formed to raise funds by offering shares to the public and there is no limit to the number of shareholders.

The Department of Trade & Industry has also published an Investor’s Handbook, which provides potential investors with a wealth of information including:

• Entry and residence of foreign investors and expatriate labour
• Foreign exchange control
• Business entities and registration
• Sources of finance for the foreign investor
• Property and licenses including intellectual property, cellular licenses and banking licenses
• Importing and exporting
• Tax Registration
• Legal matters including Competition Law, Environmental Law and Labour Laws
• Contact information for the Labour sector and National Investment Agencies

To read or download the Investors Handbook online,visit

http://www.thedti.gov.za/publications/finaldtibooklet.pdf