SOUTH AFRICA - BUSINESS GUIDE
1 ECONOMY 1.1 BUSINESS ENVIRONMENT 1.2 RELATIONSHIP OF GOVERNMENT AND BUSINESS 1.3 INTERNATIONAL RELATIONS AND ASSOCIATIONS 1.3.1 African Community 1.3.2 United Nations 1.3.3 Other Organisations 2 FOREIGN INVESTMENT 2.1 CURRENCY 2.2 EXCHANGE CONTROL 2.2.1 Exchange Rates 2.2.2 Application of Exchange Control 2.2.3 Distributions to Non-Residents from Local Estates 2.2.4 Borrowing Restrictions for Foreign-Owned Businesses 2.2.5 Dividends and Branch Profits 2.2.6 Management Fees 2.2.7 Royalty Payments 2.2.8 Temporary Residents 2.3 RESTRICTIONS ON FOREIGN INVESTMENT 2.4 STOCK EXCHANGE 2.5 REGULATORY ENVIRONMENT 2.6 PATENTS AND TRADEMARKS 2.7 INVESTMENT INCENTIVES 2.7.1 Regional Industrial Development Incentives 2.7.2 General Export Incentive Scheme 3 FORMS OF BUSINESS ORGANISATIONS 3.1 COMPANIES 3.1.1 Limited Liability Company 3.1.2 External Company (Branch Operation) 3.1.3 Unlimited liability companies 3.2 CLOSE CORPORATIONS 3.3 PARTNERSHIPS AND PROPRIETORSHIPS 3.4 OTHER BUSINESS ENTITIES 3.4.1 Trading Trusts 3.4.2 Co-operatives 4 ESTABLISHING A BUSINESS 4.1 FORMATION PROCEDURES 4.2 REGISTRATION 4.3 SHAREHOLDERS AND DIRECTORS 4.4 LABOUR RELATIONS 4.5 SOCIAL SECURITY 4.5.1 Pensions 4.5.2 Unemployment Insurance 4.5.3 Workmen's Compensation 4.5.4 Medical Aid 5 MERGERS AND ACQUISITIONS 6 TAXATION 6.1 PRINCIPAL TAXES 6.1.1 Direct Taxes 6.1.2 Indirect Taxes 6.1.3 Administration 6.2 CORPORATE TAX 6.2.1 Rates 6.2.2 Dividends Received 6.2.3 Determination of Taxable Income 6.2.4 Industrial Plant and Machinery 6.2.5 Industrial Buildings 6.2.6 Housing Projects 6.2.7 General Capital Allowances 6.2.8 Special Deductions 6.2.9 Tax Losses and Group Relief 6.2.10 Secondary Tax on Companies (STC) 6.2.11 Branch Profits tax 6.3 OTHER ENTITIES 6.3.1 Partnerships 6.3.2 Trusts 6.4 INDIVIDUALS 6.5 PERSONAL INCOME TAX REBATES 6.6 TREATMENT OF DIVIDENDS 6.7 TREATMENT OF INTEREST 6.8 TAXATION OF TEMPORARY RESIDENTS 6.9 WITHHOLDING TAXES 6.9.1 Royalties 6.9.2 Dividends, Interest and Branch Profits 6.10 OTHER TAXES 6.10.1 Value-Added Tax 6.10.2 Donations Tax 6.10.3 Estate Duty 6.10.4 Excise and Customs Duties 6.10.5 Local Taxes on Immovable Property 6.10.6 Regional Services Council Levies 6.10.7 Marketable Securities Transfer Tax 6.10.8 Documentary Stamp Taxes 6.10.9 Duty on Transfers of Immovable Property 6.11 TAX TREATIES 7 GOVERNMENT 7.1 Franchise 7.2 Fundamental rights 7.3 Parliament 7.4 Constitutional Assembly 7.5 Executive power 7.6 Provincial government 7.7 Local governments 7.8 South African Reserve Bank 8 THE LEGAL SYSTEM 9 ENTRY VISAS AND WORK PERMITS
SOUTH AFRICA - BUSINESS GUIDE
by
WERKSMANS ATTORNEYS
This information is provided by Werksmans of Johannesburg, South Africa, for use by clients. It is an adaptation of "Doing Business in South Africa" by Ernst & Young and our sincere thanks are due to our colleagues at Ernst & Young for the use of large portions of the material from that publication. It is intended to give the busy executive a quick overview of the investment climate, taxation, forms of business organisation and business, accounting and legal practices in South Africa. Making decisions about foreign operations is a complex process. It requires an intimate knowledge of a country's commercial climate. Companies doing business in South Africa, or planning to do so, are well advised to obtain current and detailed information from experienced professionals. This section reflects information current at 31 March 1996.
