Announcement: New Capital Contributions affecting those applying for Business Visas in South Africa
When applying for a Business Visa in South Africa there are a few things to take care of besides making sure that your business is registered at the Companies and Intellectual Property Commission (CIPC) and with the South African Revenue Services.
All business owners expected to register with the Department of Labour and must meet many more requirements such as that you would be expected to pay a capital contribution towards the establishment of your business in South Africa.
The newly published Capital Contribution amount for businesses, both new and existing, originating from outside the Republic borders, was announced on 15 July 2014.
According to a notice published in the government gazette and signed by the South African Minister of Home Affairs, Malusi Gigaba confirmed that R 5 000 000,00 (Five million South African Rand) are forthwith to be invested into new and or existing businesses operating on South Africa soil.
This investment can be in the form of new equipment and or machinery.
Minister Gigaba confirmed in the same government gazette notice that the contribution amount was decided on in co-operation with the South African minister of Trade and Industry Dr Rob Davies.
The list of business qualifying for a reduction of complete waiver of the capitalization requirements has also been supplied.
An update on Act, 2002 (Act No. 13 of 2002) signed by Minister Gigaba and in consultation with the Minister of Trade and Industry, is based on the fact that the businesses on this list would contribute to the country positively and it would therefore be in national interest to attract these businesses to the country.
In this case a business on this list would qualify for reduction or complete waiver of the capitalisation requirements in relation to successfully obtaining a South African Business Visa:
1.1 Fisheries and aquaculture i.e. freshwater aquaculture and marine culture
1.2 Food processing in the milling and baking industries
1.3 Beverages viz. fruit juices and the local beneficiation, packaging and export of indigenous teas
1.4 High value natural fibres viz., organic cotton and downstream mohair production
1.5 High value organic food for the local and export market
1.6 Biofuels production viz. bioethanol and biogas
1.7 Processing of seed oils: tea extracts, including buchu, honeybush: and other oil derivatives (avocado, amarula etc.)
1.8 Diversification / beneficiation of biomass sources i.e. sugar, maize
2. Business Process Outsourcing and IT Enabled Services
2.1 Call centres
2.2 Back Office Processing
2.3 Shared Corporate Services
2.4 Enterprise solutions e.g. fleet management and asset management
2.5 Legal process outsourcing