South African businesses are increasingly setting up businesses in the UK, sometimes as a hedging strategy in the uncertain economic climate in South Africa, and often because they want to tap into the global trade opportunities the UK is well-positioned for.

Scott Brown, managing director of Sable International UK, says that Britain is known for its complex bureaucracy, but if you have your paperwork in order it is a very efficient process. Setting up a comp

“Incorporating a company is relatively quick and easy – The set-up can be done in 48 hours. Most people take the subsidiary option, opposed to branch. When it comes to a branch, you would have to declare your overseas company’s result at Companies House in the UK and most people don’t want to do that,” said Brown.

“Setting up an entirely new business in the UK is not impossible to do. I would recommend that if an individual is looking to incorporate a company, they should go for the simplest structure possible; this would be one person being the director and one person being the shareholder which can be the same person. Over time more people can be added.”

The Companies Act of 2006 governs company law in England and Wales. A foreign company is required to register as an establishment with Companies House within one month of commencing business in the UK.

“Tax number applications including PAYE and VAT can usually be applied online though there are a number of questions and if completed incorrectly will lead to queries from HMRC. However, if completed correctly, you should receive the tax numbers within 5-10 working days,” said Brown.

Opening a bank account

“The red tape is not necessarily created by the government; it’s actually created by the banks,” said Brown.

Rampant money laundering and tax fraud has made the banks extremely cautious. Opening a bank account can take 3-6 months. There are certain formalities to be met from a ‘know your client (KYC)’ and anti-money laundering perspective.

“The banks want to meet and interview a director in person. As a chartered accountancy firm, we are also obliged to adhere to these procedures and regulations. Usually, the proofs obtained when we gather information to act on your behalf will also be acceptable to a banking provider,” said Brown.

“We anticipate that the process of opening an account should normally take between three to six months from start to finish. However, because we know there can be delays especially on more complex structures, we usually open a designated managed trust account for our clients to use in the meantime.”

“The bank allows us to set up a company trust account – the RE account can be opened in the company’s name, their clients can make payments into that account and we can help facilitate payments out of the account. The benefit of the RE Account is that it can generally be set up in 1-2 weeks which means the client can be up and running in a couple of weeks.

Issues arise with the banks when there are multiple shareholders or multiple directors because every director and shareholder has to be KYC. The banks may also want proof that the business is legitimate and ask for anything from a business plan, what the business is doing, their operations in South Africa and whether they have a website.

The bank must be sure the company is set up for legitimate purposes and will not be involved in crimes such as money laundering.

Other issues that can cause problems are when shares are held in trusts. Banks may require full disclosure of the trust and require details of the settlor, trustees and beneficiaries.

“The banks go down to the level of individual ownership. If you have a UK company, owned by a South African company, owned by a trust then the account opening procedure will take longer than normal as the banks want to know who the individuals in charge are. Proof of ID, ownership, who you are and your physical address is everything in the UK. You’re not going anywhere without that,” said Brown.

You do not have to be a UK Resident in order to set up a UK company bank account, but you have to have at least one director (not necessarily a shareholder) residing in the UK. To open a bank account as a non-resident, you will need proof of identity and your residential address that has been notarised. There are strict requirements involving who can, and how they can, do this.

Private limited companies are not obliged to appoint a company secretary unless the company’s articles contain a reference to this position. Existing private limited companies may retain a company secretary if they wish, and newly established companies can opt to appoint one. If you’re running a public limited company you must, by law, have a company secretary.

The company secretary usually acts as the chief administrative officer of the company, leaving the directors free to concentrate on running the business. The company secretary doesn’t have to be a director but they do share some of the directors’ legal responsibilities.

However, ultimate responsibility for ensuring the company is properly administered remains with the directors.

“One of our principals takes this role for the UK companies we act for. With our address as the registered office (legal, not trading) we combine the two roles and ensure that official documents from HMRC and Companies House, are received and dealt with in a timely and professional manner,” said Brown.

Why South Africans are taking their businesses to the UK

“The UK offers a stable currency, stable political structure and even in the wake of Covid-19, a stable economy. Regardless of Brexit, the UK is an investor- and entrepreneur-friendly country, making start-up costs for businesses lower than in most other developed countries.

“It also has one of the lowest corporation tax rates in Europe. As a small, densely-populated and wealthy country, it’s easy to find a large customer base,” said Brown.

“UK markets are opening up more because of Brexit, but Britain is still very close to Europe. UK is a very easy place to do trade from. For export businesses, the UK is a great place to be.”

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Diplomats who have finished their four-year terms in Brussels, Milan and Geneva are asking to stay on in their postings until Covid-19 poses no more travel risks.*

They say South Africa's Ministerial Advisory Council on Covid-19  has no standing to compel them to heed advice that air travel is safe. They are concerned about losing their diplomatic status and      allowances which would see them having to survive on South African  currency as well as risk arrest and deportation

Two high ranking South African diplomats have taken the Department of International Relations and Cooperation to court for refusing to extend their terms - in Belgium and Italy, respectively - because they say travelling amid the Covid-19 pandemic poses too great a risk.

Minister plenipotentiary in Brussels Suhayfa Soobedar, who was appointed by the department, and Titi Nxumalo, the consul-general in Milan who was appointed by President Cyril Ramaphosa, saw their four-year terms abroad end in June.

At that time, South Africa's borders were still closed due to the Covid-19 lockdown, and their terms were extended to mid-November, and a second time to 15 December, as they were trying to negotiate a longer stay with the department.

Their requests for a further extension were not granted, and now they find themselves in foreign countries with only their salaries to rely on. Their cost of living allowances, granted to diplomats living abroad, were stopped on 15 December, and they now fear their accreditation as diplomats will be terminated too.

In such a case, they will be expected to leave within 10 days or face deportation by their host countries. In court papers, lodged on an urgent basis in the Labour Court on Wednesday, the duo said they were "very stressed and concerned that we might be evicted from our residences and be deported from Belgium and Italy".

Soobedar said the department would "almost certainly" take measures to terminate her child's allowance in Brussels and would most likely also stop paying for his tuition fees there.

She added she would not be able to afford school fees on her South African salary and this would "severely prejudice" her minor son.Soobedar said in court papers the South African government had, in the late 1990s, forced a diplomat to return home by withdrawing her accreditation and she feared the same would happen to her.The diplomats argued in court papers any travel from their side would go against the advice from the countries they were posted in, which are currently in their "third wave" of the Covid-19 pandemic.

It is also against the guidelines of the World Health Organisation, which state those with underlying medical conditions or who are older and more at risk of getting severely ill with Covid-19 should postpone non-essential travel.

They rubbished the advice given by the Ministerial Advisory Committee (MAC) on Covid-19 in July, on which the department is basing its decision to enforce the transfer directives as a "vague and  legally unenforceable internal memorandum".

Instead, they state both their doctors have advised against international long-haul travel, given their comorbidities, as well as that of Soobedar's husband and young son. They said department director-general Kgabo Mahoai had, however, "rejected our medical practitioners' advice out of hand as uninformed" in a letter to them dated 18 November and said he would disregard their advice.

Despite various attorneys' letters, Mahoai refused to reconsider his decision, they said. They added they could not return while a state of disaster with regards to the Covid-19 pandemic was in place in South Africa.The transfer back would be risky for a number of reasons, including that they would have to let the removal people into their homes to do an inventory and to pack their personal belongings, stay in hotels before leaving and upon arrival, and take long-haul flights, with at least one change-over, since there are no direct flights.

They said the directions in the Occupational Health and Safety Act allowed them to refuse work when they reasonably felt there was a serious Covid-19-related health risk to performing their duties, and the travel related to the transfer was defined as part of their duties according to the handbook that governed relocations.

*Sick leave*

The department indicated it would oppose their application. It is understood it offered the diplomats the option to take sick leave and remain in Belgium and Italy until it is safe enough for them to travel as their replacements had already been appointed. They will continue to receive their salaries, as they would have had they returned to Pretoria, but they would not be entitled to the same allowances as diplomats.

South African Ambassador to Switzerland Nozipho Joyce Mxakato-Diseko brought a similar court application recently, but it was postponed indefinitely to allow her time to talk to the department. She was set to be replaced by Mxolisi Nkosi who was already due to travel to Geneva, the department said. Mxakato-Diseko, who was also due to return to Pretoria at the end of June, was granted a postponement to mid-November, but argued that it was not a suitable time to return due to her being in the middle of the 71st session of the Executive Committee of the UN High Commission for Refugees, immediately followed by the 73rd World Health Assembly, with President Cyril Ramaphosa being a central role-player as chairperson of the COVAX Council. She was granted another extension until mid-December, but by that time there was another surge of Covid-19 infections and her doctor advised her against travel as she is over 60 and has comorbidities.

Due to a history of lung problems, Mxakato-Diseko said she would be unable to wear a mask for long periods of time as required on a plane, or to sleep with the mask on. She added she would prefer to wait for a vaccine to be available, which should be early next year in Europe, before travelling home.

Mxakato-Diseko said in court papers:

“I cannot be blamed for the pandemic nor can I be expected to bear the risks concomitant therewith.”She added Mahoai had "flagrantly and irrationally" rejected the medical advice of her doctor.  Mahoai, however, said the MAC had said it was safe to fly and the committee was made up of medical experts.

Dear Client , friend , colleague and fellow life traveller

As we stand on the cusp of the old year of 2020 and we stand ready to welcome the new year 2021 . we pause and reflect on some of the challenges of 2020 as well as the successes.

·         Covid 19 and the curved balls it shot at us , but 9 months later we are still standing strong highlighting  the resilience in all of us and always fighting the good fight and for that you can pat yourself on the back or give yourself a “ high 5 “ .

You can have flaws, be anxious, and even be angry, but do not forget that your life is the greatest enterprise in the world.

Only you can stop it from going bust. Many appreciate you, admire you and love you. Remember that to be happy is not to have a sky without a storm, a road without accidents, work without fatigue, relationships without disappointments.

To be happy is to find strength in forgiveness, hope in battles, security in the stage of fear, love in discord. It is not only to enjoy the smile, but also to reflect on the sadness. It is not only to celebrate the successes, but to learn lessons from the failures. It is not only to feel happy with the applause, but to be happy in anonymity. Being happy is not a fatality of destiny, but an achievement for those who can travel within themselves. To be happy is to stop feeling like a victim and become your destiny's author

You will find that to be happy is not to have a perfect life. But use the tears to irrigate tolerance. Use your losses to train patience. Use your mistakes to sculptor serenity. Use pain to plaster pleasure. Use obstacles to open windows of intelligence. Never give up .... Never give up on people who love you. Never give up on happiness, for life is an incredible show.

In the words of a wise person , Mother Theresa

“People are often unreasonable, irrational, and self-centered. Forgive them anyway.

If you are kind, people may accuse you of selfish, ulterior motives. Be kind anyway.

If you are successful, you will win some unfaithful friends and some genuine enemies. Succeed anyway.

If you are honest and sincere people may deceive you. Be honest and sincere anyway.

What you spend years creating, others could destroy overnight. Create anyway.

If you find serenity and happiness, some may be jealous. Be happy anyway.

The good you do today, will often be forgotten. Do good anyway.

Give the best you have, and it will never be enough. Give your best anyway.

In the final analysis, it is between you and God. It was never between you and them anyway.

~Mother Teresa”

We your colleagues of Sa Migration applaud you for standing strong in the face of incredible challenges , rolling up your sleeves to partner with us and even if you didn’t say much , for just being there .

May 2021 be a far better year than 2020 and stay safe !!

www.samigration.com

One truck driver, who spent five days at the border, alleged some drivers bribe officials to skip the long screening lines. The All Truck Drivers Foundation said law enforcement needed to beef up security at night.

Traffic at the border reportedly stretches for more than 15km.  Truck drivers say they are being left to fend for themselves at the Beitbridge border post between South Africa and Zimbabwe at night while waiting to be screened.

Truck driver and Gauteng secretary of the All Truck Drivers Foundation Mandla Mngomezulu said drivers were being robbed of their cellphones and clothes while waiting to be screened because the police were only visible during the day.

"In the last week, I have heard of about 10 incidents. Most drivers do not report them to the police because they say it's a waste of time and how are you going to attend to the case when you are on the road most of the time?" added Mngomezulu.

Last week, he spent five days at the border and said the biggest cause for the delay was the Covid-19 screening process. "There is no water here and we have to go to the bathroom in the bushes." 

*Corruption*

The executive director of the Federation of East and Southern African Road Transport Associations, Mike Fitzmaurice, described the grim conditions in an open letter to Health Minister Zweli Mkhize.

South African regulations did not take into consideration antigen tests done in Zimbabwe, said Fitzmaurice. Truck drivers are required to undergo a test upon entry to South Africa, but these are only conducted between 09:00 and 17:00. Fitzmaurice also noted the facilities and staffing levels were hopelessly inadequate to cope with the traffic volumes.

"In every residential street, there are trucks parked all over the place," he told Business Insider about the backlog on the Bulawayo road. "The whole town has been invaded by trucks [but] that's through no fault of the truckers because they have nowhere else to go."

In a statement on Wednesday, the chairperson of the Portfolio Committee on Home Affairs, advocate Bongani Bongo, called for intervention on the backlog at the border and stated it was necessary to find a balance between easy flowing traffic and measure in place to help contain the spread of Covid-19.

"While we understand the need for stringent health checks necessitated by Covid-19, we are also cognisant of the strategic importance of the Beitbridge crossing to trade in Africa. It is in this context that strategies should have been put in place to mitigate such an occurrence, especially in relation to reducing operating hours," Bongo said.Fitzmaurice also told BI there was corruption at the border, with some truckers paying officials to bypass the Covid-19 test.

The alleged corruption is something Mngomezulu echoed. "There is also corruption where drivers pay about R500 for their trucks to be moved to the front of the line and we are told it is because they are carrying special goods which is not the case," he said.

Limpopo police spokesperson Captain Mamphaswa Seabi encouraged truck drivers to report instances of robbery, saying they had not received any reports.

Seabi said thus far there had not been any major incidents at the border, adding it was calm, despite queuing traffic reportedly stretching for more than 15km.

www.samigration.com

Pastor who fought Home Affairs on refugee marriage ban finally ties the knot

Daily Maverick -  17 December 2020

In masks and accompanied by their attorney, their baby and witnesses, the man and woman who fought and beat Home Affairs over a ban on refugee marriages finally got hitched in Port Elizabeth on Thursday.

An ecstatic, smiling Zizipho, carrying a small bouquet of white flowers and wearing a pretty white dress with yellow flowers, said one happy word when the ceremony was over and she was married to Pastor Emmanuel Ochogwu: “Finally.”

“I am superblessed and excited,” commented the bridegroom. “This has been an amazing day — a really good day.”

In 2016 the Department of Home Affairs banned asylum seekers from getting married in South Africa in what it said was an attempt to root out marriages of convenience. It took Ochogwu’s legal team four years, but on Thursday 17 December his attorney Liesl Fourie was there to witness him and his wife finally get married.

Ochogwu, who works as a pastor at the Dominion Embassy Church in Port Elizabeth, came to South Africa in 2011 after his life became threatened by a growing number of attacks on Christian believers by the rebel group Boko Haram in Nigeria.

“I have seen and am aware of numerous Christians that have been killed by Boko Haram. These Christians were thrown in wells or burned,” he explained. “Boko Haram has also attacked churches, by burning them down or bombing them. My younger brother was killed by Boko Haram during one such attack. At a time when the attacks against Christians and churches were increasing, I came to South Africa as I feared for my life. I arrived in South Africa in 2011.”

He was issued with a temporary residence permit by the Department of Home Affairs. His application for asylum was refused but he appealed against this decision and has been waiting for seven years for a hearing. If his appeal is successful, he will be declared a refugee and be able to live permanently in South Africa.

Ochogwu married his wife, a South African citizen, under customary law in September 2015, but they have been struggling ever since to get officials from the Department of Home Affairs in Port Elizabeth to register the marriage.

First he was asked for proof of the customary union, confirming that he had paid lobola and requiring his father-in-law to provide an affidavit. Then he was sent several times to Pretoria for verification of his refugee permit application. Even after this was done, officials still refused to register his marriage, saying the law had changed and asylum seekers could no longer get married.

“As a pastor in a Christian community, I want to set an example by entering into a civil marriage with my wife as it indicates to all that this will be a monogamous, long-term relationship. We were very upset that we were not allowed to get married civilly,” he said.

In November 2016, Linton Harmse, head of the Refugee Rights Centre at Nelson Mandela University in Port Elizabeth, discovered that a directive had been sent to Department of Home Affairs offices instructing officials not to register civil unions for asylum seekers. Officials claimed they could not give Harmse a copy of this directive and the document only surfaced publicly in 2017.

Ochogwu’s legal team, led by advocate Lilla Crouse SC, went to court to have the directive declared unconstitutional. The Port Elizabeth High Court did so, but the department appealed against the ruling to the Supreme Court of Appeal. In  a scathing judgment, coupled with a punitive court order, the deputy-president of the Supreme Court of Appeal, Judge Xola Petse, last year confirmed that the directive was unconstitutional.

The couple, however, still had to wait for the department to draw up a new directive. Earlier this week the couple was called in for an interview at Home Affairs and on Thursday they were married.

“I feel so relieved,” Ochogwu said. “It gave me security. What we are doing is real. There is a strong love and commitment. There are so many fake marriages out there. We have been together for a long time. Our parents are very excited,” he said.

Ochogwu’s declaration of love to his wife during the ceremony left even the most hardened of civil servants at Home Affairs a little teary-eyed.

He thanked his legal team. “Love is real,” he said. “It is more than just a feeling. It is a commitment.”

“I am so happy,” Zizipho said. “Today at Home Affairs everyone was so eager to help us. This is going to be a wonderful Christmas.”

Fourie, an attorney from the Nelson Mandela University Refugee Rights Centre, accompanied them to make sure all went well.

“We were honoured to witness the solemnisation of Mr and Mrs Ochogwu’s marriage today,” said Fourie.

“The couple didn’t hesitate one second when we asked them to take up the challenge against the Department of Home Affairs decision to refuse asylum seeker marriages. They put a face to the thousands of faceless asylum seekers affected by this patently unconstitutional prohibition.

“Today we not only witnessed a wonderful couple’s marriage, but we also witnessed justice and human rights prevail. We wish Mr and Mrs Ochogwu a long and happy marriage together,” she said.

www.samigration.com