Most foreign owners can register remotely. The step that surprises them is the bank account, where applications stall over documents, verification and unclear ownership. This guide shows your two options and how to avoid the delays.
A separate local company, owned partly or fully by a foreign person or company.
• Best for new businesses, local liability protection and group structures
• Directors and shareholders may be non-residents
• Needs SARS registration and a Public Officer who lives in South Africa
Your existing foreign company, registered with the CIPC to trade in South Africa.
• Best for established companies expanding under their own name
• The same legal entity as the parent, so the parent stays directly responsible
• Must register within the required period after it starts doing business here
Which one? A subsidiary usually suits you when you want separation of risk or a base for a group. An external company can suit a foreign company that wants to stay one legal entity. Tax, exchange control and your home-country rules affect the answer, so confirm with a tax adviser before you commit.
For either route, expect to provide:
• Certified passport copies of directors and shareholders (or the foreign company’s registration documents for an external company)
• Proof of residential address for each director
• The proposed company name and a registered office address in South Africa
• Shareholding and beneficial owner details
• For external companies: certified, and sometimes apostilled or translated, incorporation documents from the home country
• Details of your South African Public Officer
Documents in the wrong format are the most common cause of delay, so check them before you start.
1
Register with the CIPC
Register the subsidiary, or the external company, once your documents are in order.
2
Register with SARS
Register for income tax, then VAT, PAYE and UIF if your activities require them.
3
Open the bank account
Submit a complete pack and respond to the bank’s FICA/KYC requests.
4
Appoint a Public Officer
A person in South Africa responsible for the company’s tax obligations.
5
Stay compliant
File annual returns and keep beneficial ownership information current.
Banks must verify who owns and controls every account, and foreign-owned companies get extra scrutiny. Delays usually come from:
• Documents that are not certified, or are out of date
• Proof of address the bank will not accept
• Unclear shareholding, especially where companies own other companies
• Missing tax registration or Public Officer details
The bank makes the final decision, and some ask for a visit or extra steps from the owner. Build that time into your plans.
• Subsidiary and holding company set-up
• External company registration
• SARS registration
• Public Officer services
• Bank application pack preparation
• FICA/KYC guidance
• Ongoing compliance support
• Remote service for most steps
Can I register a South African company if I do not live in South Africa?
Yes. Non-residents can usually be directors and shareholders. You still need a Public Officer who lives in South Africa.
How long does it take?
It depends on CIPC processing times and how complete your documents are. The bank account often takes longer than the registration itself.
Do I have to travel to open the bank account?
That depends on the bank and your circumstances. Much of the preparation can be done remotely, but a bank may still ask for in-person verification.
What is the difference between a subsidiary and an external company?
A subsidiary is a separate South African company. An external company is the foreign company itself, registered to operate in South Africa.
Can you guarantee the bank will open my account?
No. Only the bank can approve an application. We make sure your application is complete, correct and in the format the bank requires.
Do I need a Public Officer?
Yes, for tax purposes a company needs a Public Officer in South Africa. We can help you appoint one.
Tell us whether you are planning a subsidiary or an external company, and we will tell you exactly what to prepare first.
By Innocent Muchererwa Mutara, Maltech-Africa