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The main goal of any business at all times was and is to create the most effective scheme of work, which, along with profit, minimizes the tax burden. To ensure such conditions are able to companies registered in the territory of South Africa, which can be used for export-import operations, the implementation of holding, service and other business schemes. Due to a variety of reasons, offshore companies in the
South African republic are gaining popularity today, and entrepreneurs from different countries are seeking to register them on the territory of this state.

Selecting the type of company in South Africa. Possible options

If we proceed from the legal form and the tax legislation, the companies registered in the South African republic can be of one of the following types:

- structures engaged in individual entrepreneurship - Sole Proprietorship.
- firms that carry out their activities on the basis of partnership - Partnership;
- structures belonging to the private category - Private Companies;
- the so-called public organizations - Public Companies;
- firms that carry personal responsibility for their activities - Personal Liability Companies;
- structures related to state property - State Owned Companies;
- Non-profit companies;
- firms with foreign capital - Foreign and External Companies.

In essence, all organizations of the South African Republic, which do not carry out activities on the territory of the state, are not subject to any taxes. In the same conditions, by the way, the holding companies also work.

Meanwhile, even if South African structures that do not operate on the territory of the country are not subject to any taxes, they are obliged to report to the relevant state bodies. Even this condition, even if we consider that often such reporting is conditional, increases the prestige of firms registered in the territory of South Africa.

Which tax-exempt companies in South Africa are the most popular

The most popular type of organizations registered by foreign nationals in the territory of the South African Republic are private companies, designated by the acronym PTY. In essence, such structures are limited liability companies. The names of such firms, if they are opened in this African republic, must necessarily contain the following phrases: "Proprietary Limited" or "PTY Limited". Such structures, which must have at least one shareholder and one director, are best suited for the implementation of export-import transactions.

What is noteworthy, it is most convenient to conduct business with the help of such a firm with the EU countries, since in this case there are no questions on the application of VAT.

If you have a question about choosing the type of organization registered in the territory of the South African Republic, then you can contact him with the specialists of our company who have been active in this field for several years.


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