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The most popular types of organizations registered in the Republic of South Africa are holdings and, so-called PTY-companies. When carrying out activities within the holding, its owner has the opportunity to completely get rid of taxation, as well as derive profits and dividends from the state and do not pay any compulsory fees. An obligatory requirement for the registration of a company in the territory of a given state is the introduction of authorized capital, the role of which can be fulfilled both by financial means and property.
The conditions that will need to be met when starting a company in South Africa
The opening of a company in the territory of the South African Republic is possible if the following mandatory conditions are met:
- At the time when the data about organization are entered in the state register, the following persons must necessarily be present in its state: at least one shareholder, one director and one secretary. To ensure the confidentiality of information about the current founder of the organization, it is possible to use a nominal service when registering.
- At least once a year shareholders of the company must hold meetings. The possibility of holding such meetings outside the country is allowed.
The main features of PTY-companies registered in South Africa
This form of South African organizations, like PTY-companies, is mostly used by entrepreneurs engaged in export-import operations. To firms of this type, which is important, a simplified taxation system is applied that provides the following conditions:
- The rate of income tax provided for organizations of this type is 28%.
- If one of the directors of the structure is a resident of the country, then its owner can expect a significant reduction in the tax rate. In this case, the annual tax rate will be only 7%.
To open a PTY-type company in the territory of the South African Republic, it is necessary to ensure the following requirements:
- A registered company must have at least one shareholder and one director. Each of them, which is important, regardless of his residence, should be an individual.
- The maximum number of shareholders that can be at the open structure is 50.
- Responsibility for the company's debts, as well as in terms of its relations with potential counterparties, is borne by the director personally.
- Founders of companies of this type do not have the right to participate in trading and carry out their activities on the stock exchange. In addition, similar structures are prohibited from issuing shares to the bearer.
In order not to have any difficulties with opening a company in the South African republic, you can entrust such a responsible business to the specialists of our company who possess all the necessary knowledge and rich experience in this field.
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