South Africa is one of the richest countries in Africa. It is rich in mineral resources and is
also the most economically developed on the continent. The telecommunications, electricity and
financial sectors are well developed. Main imports: oil, food, chemicals; exports: diamonds,
gold, platinum, machinery, cars, equipment. Ranked 39th in Forbes magazine's list of countries
for convenience of doing business.
The Republic has an active international policy aimed at integration and cooperation with other countries.
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From all the possible types of advantages that open up to the founders when incorporating a company, it is definitely worth noting:
According to current South African law, it is possible to register your company in the following legal form:
A private company in South Africa is known as a (PTY)
PTY companies in South Africa can offer several favourable conditions when using them. First, this type of company is most often used in the implementation of the export-import scheme of goods. This implies that the company is subject to simplified taxation. And the company's shareholders have limited liability. The number of required shareholders is one, but there are to be no more than fifty.
Based on the analysis of the current legislation regulating the activities of business entities, the following can be highlighted with regards to the specifics of the process of registering your business:
The state has the following features for levying taxes and fees
Corporate income tax is paid at a rate of 28%. Corporate Income Tax (CIT) is a tax charged on companies operating in the Republic of South Africa, that is, companies registered under the laws of the Republic or effectively managed in it, and that generate income inside or outside the Republic.
Dividend tax is charged at 20%. Dividends are exempt from tax if the beneficial owner of the dividends is a South African resident company, a South African pension fund or another tax-exempt person.
VAT is an indirect tax that mainly targets the domestic consumption of goods and services as well as goods imported into South Africa. The tax is intended to be paid mainly by the end consumer or buyer in South Africa. It is charged at two rates: standard and zero (0%). The standard VAT rate is 15%. The VAT Act contains a list of supplies of goods or services that are taxed at a zero rate. Most of the goods relate to exports and international transport, however, other specified goods used for agricultural purposes, the sale of the enterprise as an operating enterprise, some basic foodstuffs, fuel subject to fuel duty, and intended supplies by charities also amount to zero.