Are you a foreign business owner in South Africa? Did you realise that having a Business Visa can enable you to immediately apply for Permanent Residence in South Africa.
Are you a foreign national who is seeking to own and work in their own business in South Africa, and you are not married or in a partnership with either a South African citizen or permanent resident?
You could very well qualify for a Business Visa. This is a temporary visa which is issued for a maximum period of 3 years and allows you to run, operate and work in your business in SA. The business can be a start-up, a purchased company or partnership. If you only wish to invest in businesses in SA, then other options are available.
What most people don’t know though, is that, once they have the Business Visa, they immediately qualify for permanent residency. Having permanent residency as a business owner in SA opens a world of opportunities for you.
The benefits of having Permanent Residency as a business owner:
- Access to loans – with a permanent permit which is not limited, you have easier access to long-term loans for the expansion of your business ventures
- Security – Permanent residency offers great security for your company and you are eligible in some instances to lobby for business opportunities just as South African owned businesses
- Cost saving – There is no need for temporary visa and renewals. Whereas the Business Visa is issued for 3 years and gives you a head start in operating your business in SA short term, in the long run, having permanent residency means that there is no need to continuously renew the Business Visa.
Renewal of the Business Visa means that you need to go through the DTI application process each time and provide all supporting documents again – this costs money and time which is vital for your business, which you could otherwise use for the expansion and growth of your business.
- Less Admin – No admin burden of continuous visa renewals as permanent residency is permanent, with no need for renewal. You just need to ensure that you do not stay outside SA for a continuous period of 3 years else you lose the right to permanent residency.
- Family can apply with you – Your family can apply for permanent residence too with you or once your permanent residence permit has been issued further reducing costs and efforts
What do you need?
Since one already has the Business Visa, when applying for the business permit (permanent residency), the business is already operational therefore the following will be required as part of the permanent residency application:
- R5 million proof of investment
The investment must have originated from outside SA, and you need to submit certified proof of investment in the business in respect of the preceding
financial year
- Business Plan & Executive Summary
A comprehensive business plan detailing all relevant aspects of the business as well an executive summary
- Employment of SA citizens and Permanent Residents
Proof that at least 60% South Africans or permanent residents are permanently employed in various positions directly in the operations of the business.
- Statutory Compliance
Proof of registration with the South African Revenue Service (SARS), COIDA, UIF & PAYE
Case Study
Mr X came to SA as an expat, a prominent business owner from his country and the world over. Although he qualified for a Critical Skills Visa, which would ordinarily have qualified him for permanent residency in the long run, which was his desired goal, the fact that his main intention when he came to SA was to establish and operate a business, he applied for a Business Visa.
He obtained the Business Visa for a period of one year instead of the three years based on a few factors beyond his and our control. Immediately when he obtained his Business Visa for one year, we assisted him with preparing an application for permanent residency which he submitted through the local VFS Office. He managed to obtain his permanent residence permit, within the one-year period for which his visa was valid for, and during the pandemic, where there were a lot of extenuating factors that could have hindered timeous issuance of his permit! His family also applied for their permanent residency with him.
He now has a complete peace of mind knowing that he does not need to worry about visa renewals, especially after having had a one-year Business Visa which placed him in a very precarious situation in terms of business operations.
He could not enter into key agreements on behalf of the business as the CEO with the limited visa, lost out on some crucial business opportunities and the admin process of having to obtain the request for the recommendation again from DTI for another visa renewal was too daunting. With his permanent residency, he has such a peace of mind and can solely focus on his business and adding more value to the SA economy. Business is booming despite the current pandemic because of the peace that comes with knowing that he is operating legally in the country, is employing, and offering job opportunities to SA citizens and that his family’s life is well secured in SA.
If you are business owner or foreigner who would like to operate their business in SA, and in the long run, obtain SA permanent residency, do not procrastinate, and act now. Apply for your business visa, which will be your gateway to SA permanent residency therefore offering you security for your business in SA.
