Company Formation South Africa

Company Formation South Africa
Company Formation South Africa

South Africa offers various structures when deciding on the best company formation for your businesses needs.

The initial choice for your company formation is important as it defines such things as tax treatment, liability issues, the ability to raise capital and obligations to SARS (South African Revenue Service). These are all crucial items that will affect your everyday business.

The below gives you a brief insight into the main company formations, but professional advice should always be saught.

Offshore branches – for foreign companies wishing to set up operations in South Africa

Offshore branches are suitable for companies who wish to establish operations in South Africa which are subsidiaries of foreign-owned entities. In forming your company as an offshore branch, it negates the need for complex exchange control requirements when transferring company funds out of South Africa, as well as simplify the tax liabilities. The suitability of an offshore branch as your company formation very much depends upon the company’s individual situation and business objectives. Selecting this option incorrectly can mean a higher tax liability.

Sole Proprietorship

The most basic of business structures, akin to being self employed. Liability remains with the individual and no shareholding can be apportioned to third parties.


As the name suggests, liability is limited and ownership is via the issuing of shares. Particularly suited to larger organisations, companies requiring the ability to raise funds and companies with a large amount of shareholders.

Often this is the best option for foreign businesses that need shareholding to be owned by the foreign company and not individuals.

Accounts must be audited annually and signed off by a chartered accountant which will add to the accountancy fees levied against the company.

Company Formation – Expert Help

Intergate is able to provide expert assistance to guide you through the choices and importantly the implications of which company formation would best suit your organisations. Please see the link below to contact us with your requirements and to find out more about our services.

Contact us today, if you want to learn more about Company Formation South Africa


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