Not having a valid visa/permit to run your business in SA as an expat places you at a higher risk of losing your investment or profits made.
Are you a foreign expat with an existing business, or wanting to establish a business in SA, and do not have the necessary visa/permit allowing you to operate your business legally?
There are currently proposed changes in terms of the Labour laws and immigration laws which could see many expats not being able to run or operate their businesses in SA.
Recent changes in SA Immigration Laws and general impact
In recent months, the SA immigration laws have shifted significantly for qualified skilled professionals; from the non-renewal of the ZEP permit, to the discontinuation of certain Directives that were in favour of foreign SA graduates, and lately, to the new critical skills list with its new changes, which saw the elimination of previously recognised critical skills, leaving many professionals with little to no options at all for long term residency in South Africa..
No doubt many have been affected, either positively or negatively, but one thing for sure is that the changes have revealed one thing, that as an expat wanting to live, work or stay in SA, one needs to make sure that they prepare and put their visa status in order should they want to legally reside in SA, and not find themselves in a situation where they do not know what the future holds for themselves, their careers and their families.
Proposed changes on small to medium business enterprises
Now, with no exception to those who may have been impacted by any law changes in SA, are expat business owners. There are currently proposed changes in terms of the Labour laws and immigration laws which could see many expats not being able to run or operate their businesses in SA. Some of these changes will see the limitation of foreign nationals from establishing small and medium-sized enterprises and trading in some sectors of the economy. What this means is that there will be specific sectors or industries where expat business owners will not be able to obtain business visas, despite meeting the necessary requirements.
The Department of Employment and Labour and Cabinet approved the release of the National Labour Migration Policy for public comment after extensive consultation between government structures, including the Department of Labour and Home Affairs. Although the government will not undermine the rights of foreign nationals in implementing the policy, as an expat business owner wishing to operate a business in SA, one needs to ensure that they comply with all statutory regulations, such as meeting the minimum threshold required for employment of locals.
ZEP Business Permit Holder - what next?
So we take a look at the ZEP Business Permit expat, who has been operating his/her business legitimately in SA for more than 10 years either since the inception of the special permits or at any stage thereafter, starting with the DZP Permit, then ZSP Permit and now the latest ZEP Permit which will no longer be renewed, As a ZEP Business Permit holder, it means that :
- Your business is firmly established in SA and you are contributing to the economy
- You have generated revenue and profit over the years
- You are employing local SA citizens/permanent residents thus creating employment and they rely on your business’s continued existence for their own livelihood
- You are also creating employment opportunities for other SA businesses in the furtherance of your business by employing third parties to help you manage your business such as Accountants, Company Lawyers, etc.
- You are engaging and doing business with other business owners, both in SA and abroad, who gain from the operation of your own business, thus contributing significantly to the economy either through purchasing from them, consulting, providing your services, etc.
- You may have obtained long-term loans to expand and grow your business, which you are still servicing, and with no visa/permit, the payment terms will be impacted
- You have family that are relying on your continued business activities in SA, both here and back home
With the proposed changes, should they be passed and take effect before you manage to change to the mainstream business visa, it means that you may not be able to obtain a business visa, should your industry be amongst those not permitted to operate in SA. At this stage the proposed changes are still out for public comment, and yet to be finalised and passed into law, but as we have seen in the past, and recently with the critical skills list, changes take effect quickly, and you do not want to leave things to chance, and risk losing everything you have worked so hard for over the years.
It is therefore important to take action now, apply for your business visa and ensure that you comply fully with all necessary requirements. Should you not take action now and apply for your business visa as an expat operating or wanting to operate your business in SA, it means that:
- You cannot independently run your business or invest in a business
- You may resort to the use of third parties as fronts to get operations going, placing yourself at risk of losing your investments and profits made
- You will not be able to comply with statutory regulations which negatively impact the business
- May not be able to operate completely should the business fall under those industries supported once the new proposed legislation is passed.
Tips for a successful business visa application
As a ZEP Business Permit holder, to migrate to a Business Visa, ensure that :
- You have significant local SA/permanent residents employees. The minimum requirement in terms of legislation is 60% of your staff complement need to be SA citizens or permanent residents.
- You have a large SA client base, thereby showing your support and contribution to the SA local economy.
- All your statutory registrations are up to date and in order
If you are a ZEP Business Permit holder, or would like to establish and run your business in SA, please do contact us for a quick assessment by clicking on the link below and we will contact you. https://www.prestigeimmigration.co.za/
