ESTABLISHMENT OF A BUSINESS IN SOUTH AFRICA
An applicant who wishes to apply for a
business permit for a business that is to be established in South
Africa or a business that the applicant wishes to invest in, must show a
prescribed financial contribution of at least R2.5 million from abroad
into the business in order to be able to qualify in this category.
Additional requirements for the business permit are in respect of the drawing up of a business plan in respect of the proposed business and also in respect of employment of South African citizens. Furthermore, a recommendation needs to be obtained from the Department of Trade and Industry in respect of obtaining such business permit.
The permit will lapse if the holder fails to prove within a period of two years of the permit being issued, to the satisfaction of the Department of Home Affairs, that the prescribed financial contribution to the business is still invested in the business.
The only way that the capitalisation amount may be reduced is on recommendation from the Department of Trade and Industry if the business falls within one of the following industries:
- IT
- Clothing and textiles
- Chemicals and bio-technology
- Agro-processing
- Metals and minerals
- Automotives and transport
- Tourism
- Crafts
- Or upon decision of the Director-General of the Department of Home Affairs for reason of the business being in the national interest.