Download Resource
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
5 min read
South Africa for eXtrepreneurs
Today, South Africa has the most robust and supportive startup ecosystem in the African continent, along with a large market and significant consumer base. The country in recent years has become a growing marketplace for startups as it secured the 4th spot in Africa for collecting most funds with 134% increase in funding in the year 2022. This is mostly because of the relative ease of capital availability for Seed and Series A funding.
Tech startups are booming in the South African economy, especially because of the young population that is keen in adopting technology. Growing sectors include fin-tech and edu-tech, followed by AI, mobility and logistics, health-tech and ML and IoT which have attracted a major crowd of VCs, along with a very supportive startup ecosystem which includes accelerators, incubators and innovation programs. All this and more, make South Africa one of the top choices for an eXtrepreneur to expand their business in the African continent.
.jpg)
South Africa Startup Ecosystem
Today, South Africa has the most robust and supportive startup ecosystem in the African continent, along with a large market and significant consumer base. The country in recent years has become a growing marketplace for startups as it secured the 4th spot in Africa for collecting most funds with 134% increase in funding in the year 2022. This is mostly because of the relative ease of capital availability for Seed and Series A funding.
Tech startups are booming in the South African economy, especially because of the young population that is keen in adopting technology. Growing sectors include fin-tech and edu-tech, followed by AI, mobility and logistics, health-tech and ML and IoT which have attracted a major crowd of VCs, along with a very supportive startup ecosystem which includes accelerators, incubators and innovation programs. All this and more, make South Africa one of the top choices for an eXtrepreneur to expand their business in the African continent.
.jpg)
South Africa Company Formation
The South African startup ecosystem is a hub of innovation with talented entrepreneurs leaving their mark in every domain they are entering. eXtrepreneurs have access to local capital, a young talent pool, and a strong consumer and business market, making it one of the top choices to penetrate the African business ecosystem.
Sole Proprietorship and Private Company are one of the most popular entity types in South Africa which are opted by entrepreneurs to expand to South Africa. Depending on various factors which determines the growth of the business entity in South African startup ecosystem such as taxes, limitation of liability, capital requirement, etc., eXtrepreneurs need to decide the most suitable option for them to establish their startup.
.jpg)
Download Resource
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
4 min read
Overview
South Africa is one of the best marketplaces for startups (especially tech startups) with over 60% of its population comprising of youth. It allows eXtrepreneurs to set up their business and invest in a new or existing business in the country by granting them a ‘Business Visa’. Entrepreneurs with business visa can directly apply for permanent residency after 5 years of residing in South Africa (provided that they fulfil all the requirements). This makes the visa beneficial for those wanting to open their business and settle down in South Africa.
Highlights
1
Opens a pathway to Permanent Residency in South Africa
2
Unlimited travel in and out of South Africa
3
Family coverage includes spouses, dependent children and parents
Eligibility
1
Require a business recommendation from Department of Trade and Industry before the permit. This ensures the business is vetted and approved before submitting the visa.
2
Must have a certificate issued by a CA or a Professional Accountant registered with the South African Institute of Professional Accountants that the founder should have minimum R5,000,000 (South African Rand) in cash and capital that can be invested in the Republic of South Africa. It can be in cash or asset investment.
3
Undertaking to employ 60% of its workforce with South African citizens or PRs, permanently employed in various positions.
4
Undertaking that business will be registered with-
- The South African Revenue Service
- Unemployment Insurance Fund
- Compensation Fund for Occupational Injuries
- Companies and Intellectual Properties Commission, where legally required and
- Relevant professional body, board or council recognized by SAQA, where applicable.
5
Letter of recommendation from Department of Trade and Industry with regards to business feasibility.
Renewal
A Business Visa is generally granted for a period of 3-5 years. A founder can renew their Visa, in case they are issued one for 3 years, for 2 more years.
Key Criteria to be fulfilled to get visa renewed are as follows:
- Fulfil all the conditions as previously met while applying for the original Business Visa
- A Financial Statement of the previous year
- A medical report
- Letter from the Department of Labor that confirms that minimum 60% of the start-up’s staff comprises of South African citizens permanently employed in various positions
It takes around 4 months for the Department of Home Affairs to renew the visa.
Permanent Status
In South Africa, applications for Permanent Residency specifically focus on how the applicant can make a meaningful contribution to its economy and help in its growth.
Once the founder has resided in South Africa for at least 5 years they can apply for Residency-on-other grounds permit, which allows them to reside in South Africa permanently, along with their spouses.
- In order to do so, one needs to meet the requirements (ZAR 5 million investment and 60% employment to permanent residents) on two separate occasions:
- Within two years of the issue of your visa
- Again after three years.
- To apply for permanent residence, applicant must fill and submit Form BI-947 to Department of Home Affairs along with all the necessary documents.
Process and Timelines
Overview
Highlights
No items found.
Eligibility
No items found.
Renewal
Permanent Status
Process and Timelines
Overview
Highlights
No items found.
Eligibility
No items found.
Renewal
Permanent Status
Process and Timelines
DG Country Comparison ToolTM
CompareQuick peek at the top countries for eXtrepreneurs.
This tool compares the top nations inviting eXtrepreneurs on over 40 vital parameters to provide a holistic view and a comprehensive perspective of the Entrepreneur mobility options, the start up ecosystem and the policy benefits, to be availed.