Opening a company in South Africa: locals, foreigners, freelancers and digital nomads

At a glance: Pty Ltd with no minimum capital, registered on the CIPC BizPortal in 1 to 5 days for ZAR 175 (about 9 euros), 27 percent corporate tax with reduced small business rates, VAT from ZAR 2.3 million since April 2026, remote work visa from ZAR 650,796 a year of foreign income, exchange control. Legal forms. Sole proprietor: a SARS tax number only, unlimited liability. Private company (Pty Ltd) under the Companies Act 2008: no minimum capital, one shareholder and one director of any nationality, no secretary or audit unless the public interest score is high. Personal liability company (Inc.) for professions, public company (Ltd) with three directors and an audit, non-profit company (NPC). Beneficial owners are declared to the CIPC annually. Registration. Companies and Intellectual Property Commission (CIPC) through BizPortal: ZAR 125 with the standard memorandum of incorporation (ZAR 475 customised) plus ZAR 50 per name reservation, certified ID or passport copies, no notary. BizPortal issues the income tax number and registers UIF and a B-BBEE certificate in one application; the certificate arrives in one to five business days. Annual return ZAR 100 to 3,000 by turnover. Typical total with an agent excluding capital: ZAR 200 to 4,000 (about 10 to 200 euros). Taxes 2026. Corporate tax 27 percent. Small business corporations (turnover below ZAR 20 million, individual shareholders): 0 percent to ZAR 95,750 taxable income, 7 percent to 365,000, 21 percent to 550,000, then 27 percent. Dividends tax 20 percent for resident individuals and foreign shareholders (5 to 15 percent under treaties). VAT 15 percent (the 2025 rise to 15.5 percent was withdrawn); compulsory above ZAR 2.3 million turnover (about 115,000 euros) from 1 April 2026 (ZAR 1 million before), voluntary from ZAR 120,000. Personal income tax 2026-27 from 18 percent to 45 percent above ZAR 1,878,600 (about 94,000 euros); interest and royalties to non-residents 15 percent withholding. Freelancers and the self-employed. A sole proprietor registers on SARS eFiling for income tax and provisional tax (payments in August and February) and claims actual expenses. Micro businesses with turnover under ZAR 2.3 million (ZAR 1 million before March 2026) can elect turnover tax of 0 to 3 percent of receipts in place of income tax, capital gains tax and dividends tax. No business name registration, licence or social insurance applies: UIF covers employees only and there is no state pension contribution, so the minimum monthly cost beyond income tax is zero. Foreigners. 100 percent foreign ownership and no resident director rule, but every company needs a South African registered office and a resident public officer, and foreign-held shares are endorsed non-resident through an authorised dealer bank under exchange control; loans from abroad need Reserve Bank approval. Ownership caps apply in broadcasting, mining, banking and private security. Residence: the Business visa requires about ZAR 5 million (about 250,000 euros) invested, 60 percent South African staff and a Department of Trade, Industry and Competition recommendation, up to three years renewable. Bank FICA onboarding for non-residents is slow and usually needs a resident signatory. Branch of a foreign company. Register as an external company with the CIPC within 20 business days (Form CoR20.1, fee ZAR 400): certified certificate of incorporation and constitution, a registered office and a person authorised to accept service, plus a public officer and SARS registration. Taxed at 27 percent on South African-source profits with no branch profits tax and no dividends tax on remittances; most groups still use a Pty Ltd subsidiary for ring-fenced liability. Digital nomads. Yes: the remote work visitor's visa introduced in May 2024 for people employed by a foreign employer under a contract, with gross income of at least ZAR 650,796 a year (about 33,000 euros) shown in three months of bank statements (cut from ZAR 1 million in October 2024); issued for more than three months and up to three years, applied for through VFS or an embassy with the contract, return ticket and medical cover, no local employment allowed. Holders tax resident in a treaty country register with SARS only after 183 days in 12 months; most European and American visitors otherwise get 90 days visa free. Changed recently. Remote work visa and points-based work visas (May and October 2024); Companies Amendment Act in force (December 2024); VAT rise to 15.5 percent withdrawn (April 2025); carbon tax phase two (1 January 2026); turnover tax threshold ZAR 2.3 million (1 March 2026) and VAT thresholds ZAR 2.3 million and 120,000 (1 April 2026). Figures checked October 2026 from the CIPC, SARS, the Department of Home Affairs and the South African Reserve Bank, with PwC and South African law-firm summaries; thresholds and fees change yearly. Confirm with a licensed adviser in South Africa before you file.