Starting a business in SA as an expat is not only about having a registered business, but also having the necessary visa/permit allowing you to operate and work in your own business in SA legally.
Whilst any foreigner may own a business with no restrictions in South Africa, should they intend to work within that business or come to live in South Africa and actively operate the business, a Business Visa will be required. Immediately thereafter, they can apply for permanent residency if their intention is to stay in SA permanently.
Now most foreigners get past the process of registering a business in South Africa, because it is possible to do so, but what they do not realise is that without a Business Visa or permanent residence permit, their involvement in the business is limited. One of the biggest frustrations is that one cannot actively market and grow their business because by doing so, they are “exposing” themselves, putting themselves and the business at risk.
Many foreign business owners or prospective business owners in SA without the relevant Business Visa or permanent residency allowing them to operate and work in their businesses often find themselves in a precarious position in that they:
- Cannot actively market and grow their businesses because they lack legal documents allowing them to work in their businesses, and the fear of “exposing” themselves thus making them more vulnerable limits the growth of their businesses.
- Lose out on certain contracts and tenders either because they do not have a Business Visa or permanent residency.
- Have limitations on valid legal claims to fair business practices due to lack of documentation.
As a result of this fear and insecurity, most business owners resort to either:
- Using fronts to run operations in their businesses and face the risk of being bought out of their own business and losing their investments
- Must travel in and out of the country not only to maintain legal status, but to ensure that they “are on the ground” often enough to monitor operations. This is costly and time-consuming for the expat. Apart from trying to avert the costs incurred with travelling in and out of the country on short-term visas, one needs to obtain the correct visa to allow them to work in their business in SA as the law has made provision for this through the Business Visa, and subsequently, permanent residency immediately thereafter.
Starting a business in SA as an expat is not only about having a registered business, but also having the necessary visa/permit allowing you to operate your business in SA legally. The very premise of the business visa is to attract investment from outside SA, to help boost the economy. It is important to comply with the laws of the country to allow one to run their business and get the full benefits that come with running a business as an expat in SA.
TESTIMONIAL
We have a client, who had to travel in and out of the country to regularise his stay on short-term visas and to be actively involved in the business which he had established. Business was doing great, and the projections were very positive, but because he was so frustrated with travelling in and out of the country, which was very expensive and time consuming, he also lost out on a huge chunk of his investment because he had to use a front to run operations and engage in compulsory statutory registration due to the nature of his industry, and he could not do so without legal status, he approached us to assist him with his Business Visa application. Upon assessment, he qualified for the Business Visa. We assisted him with the request for the recommendation letter from the Department of Trade and Industry, which came back positive, and he was only so happy because it meant that he could proceed and submit his Business Visa application. Now with a Business Visa, he can present himself for any business opportunities, he can do statutory registrations himself without having to use fronts and has no risk of losing any further investments, and clients are now at ease to have business dealings with him, which was very difficult before with no visa. It affected the level of trust between him and his clients, which negatively impacted the business. Now with a valid Business Visa, this has increased his operations and he does not feel “exposed” anymore, and operations are booming because he can freely run and work in his business. What is even more exciting is that come January 2022, he can submit his application for permanent residency and does not need to wait for any period on the Business Visa, which will give him even more benefits and more security as a foreign business expat in SA.
If you would like to have a Business Visa which allows you to operate and work in your business in SA, and subsequently permanent residency, please click on the link below and provide us with your information and we will call you for a quick assessment.
