Set-up Your Company in South Africa
South Africa, also known as the Republic of South Africa, is a country placed at the southern edge of Africa and is considered the economic powerhouse of Africa. It is one of the most sophisticated and promising emerging markets globally attracting investors from all over the world. One needs to look at the various options for company formation prior to setting up a business in South Africa.
Deciding the structure can have a significant effect on all the future operations and therefore, it is vital for the business owner to consider a number of options before company formation and seeking professional advice is emphasized to have efficient structure. The team of professionals at NNRoad can help and guide you throughout the company formation process and will make sure that you have a structure in accordance with the African laws.
Business entities you can open in South Africa
1) Sole Proprietor
This is the simplest of business entities, a sole proprietor trades under his/her own name, with no separation of assets and liabilities.
2) Private Company (Pty Ltd)
This business entity may be founded and managed by just one director (known as a One-Man Company), and must have at least one shareholder, but no more than 50.
3) Personal Liability Company (Inc.)
This is a business entity in which both current and previous directors may be held jointly and severally liable for any debts and liabilities which occur during their time in office. This form of business enterprise is most often used for firms of professionals, such as doctors, lawyers, and accountants.
4) Public Company (Ltd)
This is a business entity that issues shares and is often listed on a stock exchange. Public companies are liable to shareholders and management is invested in a Board of Directors.
5) State-Owned Company (SOC)
This is a business entity that is either state-owned or owned by a municipality.
Our Company Formation Service Includes:
- Confirm the selection of a business entity type.
- Assist with the name or business name of the entity.
- Guiding and preparing legal documents like incorporation forms, a draft of Memorandum, and other related incorporating documents if needed.
- Assist with bank account opening.
- Assist with registration of the company with mandatory social securities like Unemployment Insurance fund (UIF), Occupational Injuries and Diseases Compensation, etc.
- Support with mandatory registration of income tax, value-added tax, and any required licenses.
- Support with after company setup services.
- Assist with other licenses, if required by Law.
PEO/Employer of Record in South Africa
Hire employees in South Africa while NNRoad handles all employer liabilities. No local entity needed.
NNRoad provides PEO solutions for clients willing to hire employees and run payroll without establishing an entity in South Africa. Our employer of record service eliminates the need for local incorporation saving all the time and money.
As your employer of record NNRoad will take on the legal responsibility of employing and paying your employees in South Africa. The candidates will be assigned to work on behalf of your company as if they are your employee to complete the associated tasks. Our Employer of record (EOR) service will keep ensuring full compliance of your business when expanding into the African market.
NNRoad's PEO/Employer of Record Service in South Africa Includes:
- Engaging employees through local labor contracts including contract administration, engagement, extension termination, and conversion to a permanent hire.
- On-boarding and off-boarding employees following local labor law practice.
- Registration of contractors/employees with the social security board and with the tax office.
- Complete payroll solution and mandatory benefit administration.
- Employee management according to local laws, including employee record, timekeeping, bonus and allowance management, expense and claims, etc.
- Payments of local taxes and local social contributions to the relevant authorities.
- Year-end tax filing, if required.
- Payment management, including invoicing customers/clients and salary payments.
- Support with Work permit sponsorship for expat employees.
Irrespective of the fact where the company is based, paying salaries to employees in a timely manner along with income tax and social security compliance in terms of withholding and calculations is a must.
As every country observes a different tax and employment system, therefore, a deep understanding of the law is necessary for any company before the setup up a payroll.
NNRoad can provide a comprehensive and flexible outsourced payroll service that is tailored according to each client’s individual requirements. You can invest your time and resources to develop essential business activities by outsourcing your payroll needs to NNRoad where we make sure that all the obligations are fulfilled in a timely and efficient manner according to the African jurisdiction.
- Registering and de-registering the necessary company and personnel information for payroll calculation in compliance with local rules.
- Registering all local employees with the social security board, if required.
- Calculation of gross salary, salary deductions, such as withholding taxes, social insurances, unpaid leaves, etc., and net salary based on information provided by the Company including irregular payments such as incentive/bonus, allowance, etc. if applicable.
- Handling entire payroll administration function including collection and payment of taxes and statutory deductions to the government authorities.
- Pro-rata calculation for people who join/resign.
- Providing a monthly payroll summary to the Company.
- The monthly issue of electronic pay-slips.
- Preparation of monthly/annual income tac calculation and contributions.
- Prepare annual payroll related reconciliation report.