How to start a business in South Africa as a foreigner

Thinking about starting a business in South Africa? A fantastic idea – we support 100%!

South Africa is FULL of opportunity if you go looking for it—whether you want to dabble in tourism, launch a tech startup, or try your hand in agriculture or renewable energy, the potential here is huge.

But let’s be real for a second—registering a business in a foreign country can feel overwhelming, right?

You’re probably overthinking, asking yourself questions like…

“What paperwork do I need?”

“Do I need a visa?”

“How do I handle taxes and all those rules?”

… and now you’ve found your way to this article (you’re in the right place!)

You don’t have to figure it all out on your own – we’ve got your back.

This guide will walk you through everything you need to know, step by step. By the time you’re done reading, you’ll feel confident and ready to take action.

So, why South Africa?

What makes it such a great place to start your business?

Well, believe us when we say, it’s SO MUCH more than just the stunning landscapes and vibrant culture.

South Africa is a land of opportunity for entrepreneurs, especially if you’re coming in with fresh ideas and ambition, here’s why:

1. It’s the gateway to Africa

South Africa isn’t just a great place to do business—it’s your way into doing business in the rest of Africa, too.

With solid infrastructure, trade agreements, and access to one of the largest markets on the continent, you’re perfectly positioned to expand into other African countries when the time is right.

2. Thriving industries

There are A LOT of business opportunities here.

Whether you’re looking into tourism, technology, renewable energy, agriculture, or manufacturing, South Africa has a bunch of thriving industries waiting for innovative entrepreneurs like you.

3. No Residency Required

Here’s a game-changer: You don’t need to be a South African resident to own a business here.

Yep, you can register and run your company even if you’re not living in the country.

4. Support for Entrepreneurs

South Africa looooves entrepreneurs, which is why there are government programs, funding opportunities, and organizations like the Small Enterprise Development Agency (SEDA) designed to help you.

They provide everything from training to funding and are open to supporting foreign business owners too (pretty great, right?)

Alright, let’s get down to business—literally.

Here’s how you’re going to start a business in South Africa as a foreigner, step-by-step…

Step 1: Understand the Requirements

The first step in registering your company in South Africa is making sure you’ve got all the right documents and meet the legal requirements.

Don’t worry, it’s not nearly as scary as it sounds!

Here’s what you’ll need:

1. Certified Copy of Your Passport

You’ll need a certified copy of your passport as part of the registration process.

If your passport isn’t in English, you’ll need to have it translated and certified. This can be done through your local embassy or a South African notary.

2. A Physical Address in South Africa

Every registered business in South Africa needs a physical address.

If you’re managing things remotely, a virtual office can be a great option. Services like Regus provide professional addresses that you can use for compliance.

Pro Tip: A virtual office is perfect if you’re running your business from abroad but still need an official address.

3. Work or Business Visa (If You’re Moving to South Africa)

If you’re planning to live in South Africa to manage your business, you’ll need a business visa.

Not moving here? No worries—you can skip this step and operate remotely.

For more details on visas, check out the Department of Home Affairs website.

4. Proof of Your Business Operating Address

To register your business, you’ll need to show proof of where it operates.

This could be:

A lease agreement,
A municipal utility bill, or
A virtual office rental agreement.

5. Share Certificates (If You Have Business Partners)

If your business has shareholders, you’ll need to issue share certificates.

These documents prove who owns what and are legally required to stay compliant.

Pro Tip: Don’t skip this step if you have partners. Forgetting to issue share certificates can lead to major legal headaches down the line.

Step 2: Registering Your Business

So, you’ve got your documents ready—what’s next?

Now it’s time to officially register your business.

Instead of navigating government systems yourself (which is known for taking a lot of time, and really testing your patience – it’s a whole thing), why not make it easier by getting Govchain to sort it all out on your behalf?

Govchain specialises in helping entrepreneurs (including foreigners!) register their businesses quickly and hassle-free by handling the paperwork, guiding you through the process, and ensuring you’re staying 100% compliant, even after you’ve registered.

Here’s how it works:

1. Choose Your Business Name

Before registering, you’ll need a name for your company.

Think of something unique that reflects your brand.

Then, check if your chosen name is available with this nifty company name search tool, so there’s no back-and-forth having to chop and change your name a bunch of times.

Pro Tip: It helps to have a few backup name ideas ready in case your first choice is already taken.

2. Submit Your Details to Govchain

Once you’ve settled on a name, simply head to Govchain’s Company Registration Service and submit your details.

For this step, you’ll need…

Certified copies of directors’ passports.
Proof of your business address (lease agreement, utility bill, or virtual office rental).
Your desired business name(s).

And that’s it – Govchain takes care of the rest!

Govchain will…

Prepare and submit all the required forms on your behalf
Make sure everything is accurate and complete
Save you time and avoid unnecessary delays
Send your company registration certificate to you

Your Company Registration Certificate is going to be a SUPER important document now that you have your own business—you’ll need it to open a business bank account, register for taxes, and operate legally.

Bonus: Govchain can also assist with additional services like VAT registration, tax clearance, and more.

Step 3: Opening a Business Bank Account

Now that your business is officially registered, the next step is setting up a business bank account.

While it’s not legally required in every case, it’s highly recommended—especially if you’re…

Running a Pty Ltd
Plan to register for VAT
Want to hire employees
Thinking of applying for loans

A business bank account will keep your personal and business finances separate, making it easier to…

manage cash flow
stay tax-compliant
maintain professional credibility

All-in-all, it’s a good thing to have.

Choosing the Right Bank

South Africa’s top banks—like FNB, Standard Bank, and Nedbank—offer a range of business banking options.

Each has its own features, such as…

lower fees for startups
accounting software integration
dedicated business advisors

If you want a quick and hassle-free solution, Govchain can open a business bank account for you with FNB as part of their services.

This is a great way to save time and avoid the back-and-forth with the bank.

Pro Tip: If you’re handling it yourself, call your preferred bank ahead of time to confirm exactly which documents they’ll need. While the requirements are mostly standard, some banks may have additional requests and it’s best to be prepared.

How to Open Your Account

Here’s what the process looks like if you’re opening the account on your own:

Book an appointment with your chosen bank.
Bring all the required documents (see the checklist below).
Complete the application forms provided by the bank.
Once approved, you’ll receive your account details and can start using your business account immediately.

What You’ll Need

To open your business account, be prepared to provide:

Company Registration Certificate – Supplied by Govchain after registration.
Certified Copies of Directors’ Passports – All directors must submit certified copies.
Proof of Business Address – This can be a lease agreement, utility bill, or virtual office rental.
Tax Registration Number – You’ll get this when registering with SARS (we’ll cover this in Step 4).
A Work/Business Visa will also be required if the director isn't a SA citizen.

Step 4: Registering for Taxes

Once your business is registered and you’ve set up a bank account, it’s time to tackle taxes.

In South Africa, every business must register with the South African Revenue Service (SARS) to operate legally.

Even if your business is starting small, staying on top of tax compliance is SUPER important.

Here’s what you need to know:

What Taxes Do You Need to Register For?

Depending on the type of business you’re running and your revenue, here are the main taxes to consider:

Income Tax

This is mandatory for all businesses, regardless of size or revenue.

Once you complete a CIPC Company Registration, you’ll automatically be registered for income tax.

VAT (Value-Added Tax)

If your business makes over R1 million in annual revenue, you must register for VAT.

You can voluntarily register for VAT your revenue is below R1 million and you think it will benefit your business (e.g., if you’re dealing with VAT-registered suppliers).

PAYE (Pay-As-You-Earn)

If you’re hiring employees, you’ll need to register for PAYE to deduct and submit their taxes to SARS.

UIF (Unemployment Insurance Fund)

This is mandatory if you employ staff. It ensures your employees are covered in case of unemployment, illness, or maternity leave.

COIDA (Compensation for Occupational Injuries and Diseases)

Required by law if you have employees. It protects workers in case of workplace injuries or illnesses.

Pro Tip: Many new business owners forget about COIDA registration. It’s crucial to include this step if you’re planning to hire staff.

How to Register for Taxes

There are two main ways to register for taxes in South Africa:

Option 1: Do It YourselfYou can register for taxes directly with SARS through their eFiling platform.

Here’s how:

Create an account on the SARS eFiling website.
Complete your business tax registration by submitting the required documents.
Once approved, SARS will issue your tax number(s), including VAT or PAYE if applicable.

Heads-Up: The eFiling system can be tricky to navigate if you’re not familiar with it. Be prepared to spend some time understanding the platform.

Option 2: Let Govchain Handle It

If you’d rather skip the hassle, Govchain can handle your tax registrations for you.

They’ll ensure everything is submitted correctly, saving you time and avoiding any potential mistakes.

Whether it’s VAT, PAYE, or COIDA, Govchain makes the process simple and stress-free.

What You’ll Need to Register

Here’s a checklist of the basic documents required for tax registration:

Company Registration Certificate
Certified Copies of Directors’ Passports
Proof of Business Address (e.g., lease agreement or utility bill)
Business Bank Account Details
Employee Information (if registering for PAYE or UIF)

Starting a business in South Africa as a foreigner may seem overwhelming at first, but it’s completely achievable with the right resources and guidance, and before you know it you’ll be well on your way to launching your dream business.

We’ll be with you every step of the way – so you can take the leap and know you’re in good hands.

Let Govchain help you handle the hard parts so you can focus on what matters most—building your business and your future in this beautiful country.