What is The business permit South Africa?
A business permit is designed for entrepreneurs seeking to establish and run a business in South Africa. It could be a brand new business or an existing business being moved to operate within South Africa.
Who is a South African business permit for?
In order to obtain a business visa, one would need to either invest the prescribed amount of R5 million into an existing business or provide plans to establish a new business along with evidence of the capital contribution of R5 million.
The Department of Home Affairs may reduce or waiver the capital contribution amount, should the business be of national interest or upon being requested to do so by the Department of Trade and Industry.
Permanent residency is granted immediately to the holder of a business permit in South Africa (also known as a business visa).
How would I qualify for a business permit, for South Africa?
If it is an existing business
- An investment amount of 5 million rands has been made, which must be made from funds introduced from abroad; submitted certified proof of investment in the business in respect of the preceding
- To present a comprehensive business plan detailing all relevant aspects of the business in addition to a focus on the Department of Home Affairs criteria;
- Proof that at least 60% citizens or permanent residents are permanently employed in various positions directly in the operations of the business;
- Proof of registration with the relevant professional body, council or board recognised by SAQA in terms of section 13(1)(i) of the National Qualifications Framework Act, where applicable;
- Proof of registration with the South African Revenue Service;
- Proof of registration with the relevant professional body, council or board recognised by SAQA in terms of section 13(1)(i) of the National Qualifications Framework Act, where applicable.
- A foreigner who invests or has invested in an existing business as a partner shall submit certified proof of investment in the business and the partnership agreement.
- Satisfactory medical reports;
- Satisfactory police clearance certificates;
- A completed temporary residency application form;
- Undertakings in respect of South Africa Revenue Service obligations;
- An appropriate company structure
From a personal perspective
- An application for a permanent residence permit;
- The applicable application fee;
- A copy of a birth certificate in respect of the applicant;
- Biometrics in respect of any applicant over the age of 16 years;
- A yellow fever vaccination certificate if that person travelled or intends travelling from transits through a yellow fever endemic area;
- A police clearance certificate and medical and radiological reports;
- The documents relating to the applicant’s marital status or spousal relationship
- An unabridged birth certificate in respect of each dependent child;
What evidence should I provide?
You would need to provide a chartered accountant’s certificate confirming the R5 million cash or capital contribution is available to be to be invested into the book value of the business. If you are establishing a new business, a comprehensive business plan is also required. Please note that funds comprising the R5 million investment must originate from abroad.
How long does it take to process a business permit?
Whether you applying from abroad or locally the processing time from application can take estimated 30 days – 40 days
Pros of a South African business Permit
- The investment amount can be broken down into an R500,000 capital contribution immediately and the remaining balance to be transferred to the country and invested into the business over a 12 month period.
- If a business is in the following sector it can receive a reduction in capital requirements. Agro-processing, IT and outsourcing businesses services, Transport equipment, metals and electrical machinery and apparatus, electro technical, textile, consumer goods, boat building, pulp. paper & furniture, automotive & more
Cons of a South African business Permit
- Must ensure you employ 60% South African citizens or Permanent Residents
- Must invest a minimum of R5 million into the business
Temporary Residency Option
Apply for a business visa if you’re looking to do business in South Africa on a temporary basis