07/03/2022
Where to begin with starting a business as a foreigner in South Africa
Importantly and before you commit time and money, you should have an assessment of your circumstances and requirements carried out. Assessments, as with ourselves, should be free of charge and carry no obligation.
Very often, and understandably, people source information on the obvious, in this case the business visa. There is however a real alternative that should be considered, if for no other reason to ensure you have made an informed decision.
Below we look at the TWO routes for starting a business as a foreigner in South Africa and discuss the merits and pitfalls of each.
The different visa’s for starting a business as a foreigner in South Africa
In order to be able to set up, invest into and work within a business in South Africa as an immigrant there are TWO types of visa you can apply for:
BUSINESS VISA – Traditionally, for anyone starting a business as a foreigner in South Africa this category has been the most recommended.
INDEPENDENT FINANCIAL PERMIT – A very underused permit category that allows for the holder to commence a business, but also offers a host of other benefits over the business visa route.
WHO can apply?
Business visa are for those individuals seeking to invest in a business, or an existing start up, and who will be working within the business.
The Independent Financial skills permit is a permit that is not restricted to a certain economic activity. As such it allows the holder total freedom to invest into a business, whether they will be working in it or not. There is also no obligation to invest, or start a business. In short the holder of the Independent permit is free to make their own decision as to whether they run a business, work or even retire.
Must there be local ownership?
No a business can be owned and run with 100% foreign ownership. However for those with a local partner this is also fine. This applies to both the business visa and independent financially independent.
Can I buy into or outright an existing business?
Yes, which ever permit or visa category you select you can do either or indeed set up one from scratch.
Is there a minimum shareholding a foreigner must own?
As a business visa holder you will need to typically own in excess of 25% of the business. A Financially Independent permit holder has no restrictions.FOR FURTHER ENQUIRIES CONTACT US AT:
[email protected]
0848997546
