Foreign nationals looking to invest in South Africa by establishing a new business or investing in an existing one will need to apply for a business visa or permit. A minimum investment of R5 million is required, and the business must align with the ‘national interest’ as determined by the Department of Home Affairs.
The Process:
To begin, you will need to complete the Form BI-1738 and submit a certificate from a chartered accountant registered in South Africa.
The Criteria:
- A prescribed investment amount (in cash) must be brought into South Africa.
- The business must be submitted for review by the Minister of Trade and Industry.
- At least 60% of your workforce must consist of South African citizens or permanent residents.
- If the business is not yet operational, you must register with the following:
- South African Revenue Service (SARS)
- Unemployment Insurance Fund (UIF)
- Compensation Fund for Occupational Injuries
- Companies and Intellectual Property Commission (CIPC)
- A letter from the Department of Trade and Industry is required to confirm:
- The business’s feasibility
- Its contribution to South Africa’s national interest
Business Visa Applications for Existing Businesses:
If you are applying for a visa for a pre-existing business, the following documents are required:
- Financial statements from the previous fiscal year
- Proof of registration with:
- SARS
- UIF
- Compensation Fund for Occupational Injuries
- CIPC
Key Requirements:
- Financial Contribution: A minimum investment of R5 million is required unless you qualify for a reduction via a waiver (available for select businesses).
- Job Creation: The visa aims to promote job creation in South Africa, requiring that at least 60% of your employees are South African citizens or permanent residents.
- Business Success: You must submit a detailed business plan that demonstrates the business’s potential for success and its roadmap to achieving it.
- Company Structure: A formal business structure must be established.
- Contribution to South Africa: All necessary registrations must be completed to comply with tax and labour regulations.
- Desirability: Your visa application may be rejected if the business is considered undesirable.
