South Africa presents itself as an attractive jurisdiction in the south of the African continent with excellent freedom to establish itself with offshore companies, and with a guaranteed regulation for the largest possible participation of investors.

In principle we will explain that the creation of foreign-owned companies in South Africa is governed by the same as for local ones. Therefore, no express authorization from the South African government is required.

So that a foreign investor can start his activity. What is required is that the South African Reserve Bank be informed of the corresponding inflow of foreign capital.

With the exception of financial institutions, any foreign company can establish a business domicile in South Africa, and carry out its activities without having to be incorporated as a local entity.

Offshore companies located in South Africa must designate a South African resident as the legal representative of the company. In addition, foreign companies must appoint an auditor.

Offshore companies and capital repatriation

Please note that the creation of a branch requires registration as an offshore company within 21 days from the date of establishment of the registered office. 

Like branches, the South African limited liability company is the most common type of entity established by foreigners and local residents in South Africa.

Among the requirements to form this company are to have 1 director and 1 shareholder, which may be foreigners residing in another jurisdiction. In addition, there is no legal requirement for share capital. 

A company incorporated in South Africa must appoint a civil servant. This person will be a resident of South Africa and may be an employee of the company. You will be considered to be the registered representative of the company in South Africa.

In South Africa, the only existing limitations are minimum capital requirements in banking and insurance companies, and limitations on access to local credit for companies that exceed 75% foreign participation in their capital.

If you want to know about the repatriation of capital, we inform you that in general there are no restrictions on transfers of entry or exit of funds whose beneficiary is not a resident. 

Please note that foreign capital invested in South Africa can be freely repatriated to the country of origin. However, authorization by the central bank is necessary, which must have previously been informed of the entry of foreign capital at the time of investment.

If you wish to register an entity in South Africa, Foster Swiss can advise you.

We help you in practically everything: we provide advice from the moment you choose a corporate structure for your company until even one year after you have incorporated your company. And of course we take care of the whole process for you.

For more information on this topic or any requirement related to our services, you can contact directly through info@fosterswiss.com