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A video showing irate members of the public has since gone viral on social media, wherein a security guard is seen waving a pepper spray as he demands members of the public to go outside. This occurred as frustrations came to a head at the Home Affairs Randburg branch when the system went offline, causing undue frustration for the members of the public. Taking to X, Schreiber said he was horrified when he learnt about the video on Thursday morning and that action had since been taken against the security guard involved. “I was appalled upon receiving this video at 10:50 this morning. An investigation was launched immediately, and by 17:00 the individual in question was removed. “On behalf of #TeamHomeAffairs, I apologise to all clients affected,” said the minister on X. He said upon further investigation, he conceded there were IT-related challenges at the Randburg branch. “Upon investigation, the deeper problem at this office - as with most other challenges at Home Affairs - are related to IT. “This affirms the urgency of digital transformation, so that our services become accessible in more locations and over the internet to reduce the need for anyone to stand in queues,” he said. I was appalled upon receiving this video at 10:50 this morning. An investigation was launched immediately, and by 17:00 the individual in question was removed. On behalf of #TeamHomeAffairs, I apologise to all clients affected. Meanwhile, other frustrated residents have reported that they have been turned away on three consecutive occasions from the same branch due to the IT issues and the system being constantly offline. One user took to X to relay their frustration. “This is our third visit to Home Affairs Randburg where we have been refused service and told to leave. I desperately need to renew my passport, and the website says no bookings required for online renewals. They made me sit outside in the dirt the entire day to be told they can’t help,” said Tammi on X. |
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For South African business visa and business-related residency applications, the term "investing into the book value of the business" refers to the financial commitment a foreign investor makes into a South African company. This investment is assessed based on the book value of the business, which represents its total assets minus liabilities, as recorded in its financial statements. 1. Understanding "Book Value" The book value of a business is the net worth of the company, calculated as: Book Value=Total Assets−Total Liabilities\text{Book Value} = \text{Total Assets} - \text{Total Liabilities}Book Value=Total Assets−Total Liabilities This means that if a business owns R10 million in assets but has R2 million in liabilities, its book value is R8 million. For immigration purposes, an investor must inject capital that increases this book value, either by adding cash, assets, or investments into the business. 2. Why is Book Value Important for Immigration? South Africa’s business visa requires a minimum investment of R5 million, but this does not necessarily mean only cash investment. Immigration authorities assess whether this investment adds value to the business by increasing its assets or reducing its liabilities. To meet the investment requirement, a foreign national can contribute funds or assets that improve the company's financial position, thus increasing its book value. 3. Acceptable Forms of Investment into the Book Value A foreign investor can invest in the book value of a South African business in different ways, including: A. Cash Investment - Directly depositing R5 million or more into the business bank account. - The money should be transferred from abroad and declared with SARS for regulatory compliance. B. Purchase of Business Assets - Buying machinery, equipment, or technology that enhances business operations. - If a factory or manufacturing unit is involved, purchasing industrial tools increases the asset base. C. Settling Liabilities - If the company has significant debts, an investor can pay off business loans or outstanding liabilities. - Reducing liabilities automatically increases net book value. D. Purchasing Equity or Shares in a Business - If an investor buys equity (ownership) in a South African business, this counts as investment into the business. - The acquired shareholding must reflect in the company’s financials. E. Property or Infrastructure Investment - Buying office space, warehouses, or land under the company’s name is considered a valid investment. - However, personal property purchases do not count towards the business visa investment. 4. How This Affects Business Visa and Residency Applications - Business Visa (Temporary Residence Permit): o The R5 million investment requirement can be satisfied through any of the above methods. o If a business operates in a priority sector, a reduced investment amount may be approved. - Permanent Residency via Business Investment: o An investor who sustains the business and maintains jobs for South African citizens can apply for permanent residence. o Home Affairs will assess if the investment remains in the business and continues to contribute to the South African economy. 5. Required Documentation to Prove Investment in Book Value To show compliance with the investment requirement, the following documents must be submitted: - Bank Statements - Showing the capital investment transfer. - Audited Financial Statements - Confirming increased book value. - Proof of Asset Purchases - Invoices and receipts for machinery, equipment, or property. - Shareholder Agreements - If buying equity in an existing business. - Business Valuation Reports - Conducted by an accredited accountant. 6. Example Scenario Example 1: Direct Investment in a New Business - A foreign investor opens a manufacturing company in South Africa. - They deposit R5 million into the business bank account. - The business buys machinery worth R3.5 million and leases a warehouse for R1.5 million. - The total book value of assets increases, meeting the visa requirement. Example 2: Investment in an Existing Business - A foreign investor buys a 30% share in an existing IT company. - The company’s book value is R10 million, and their investment adds R5 million to the asset base. - The business retains financial records to confirm the transaction. Conclusion Investing in the book value of a business for immigration purposes means injecting capital or assets that increase the company’s net worth. The South African Department of Home Affairs assesses whether this investment adds real economic value, which qualifies the investor for a business visa or permanent residency. Would you like assistance with specific investment options or documentation? How can we help you , please email us to info@samigration.com whatsapp message me on: +27 82 373 8415, where are you now? check our website : www.samigration.com Please rate us by clinking on this links : Sa Migration Visas https://g.page/SAMigration?gm |
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Step 1: Choose a Business Structure Before registering, you need to decide on the type of business entity. The common structures in South Africa include: 1. Private Company (Pty) Ltd - Most common for entrepreneurs and small businesses. Limited liability for owners. 2. Public Company (Ltd) - For businesses that plan to list on the stock exchange. 3. Sole Proprietorship - Owned by one person, personally liable for debts. 4. Partnership - Two or more people share ownership and liability. 5. Co-operative (Co-op) - Member-owned business. 6. Non-Profit Company (NPC) - Used for charities and social organizations. Most businesses register as a Private Company (Pty) Ltd. Step 2: Reserve a Company Name - You can reserve a business name with the CIPC online or when submitting your registration. - Steps: o Go to the CIPC e-Services portal o Create an account and log in. o Submit a Name Reservation application (you can suggest up to 4 names). o Pay a name reservation fee (R50 per name). o If approved, you will receive a CoR9.4 name reservation confirmation. If you don’t register a name, CIPC will issue the company with a registration number as its default name. Step 3: Register the Business with CIPC - You can register a business as a Private Company (Pty) Ltd through: o CIPC online portal o BizPortal.gov.za (for simplified business registrations) o Banks like FNB, Standard Bank, Nedbank, and Absa o Professional service providers (e.g., attorneys or accountants) - Documents Required for Registration: o ID or passport copies of all directors o Proof of address (not older than 3 months) o Company name reservation confirmation (CoR9.4) o Memorandum of Incorporation (MOI) - Defines the company structure o Directors’ details and consent forms - Processing Time: o Online registrations usually take 1-3 days. o Manual applications may take 5-7 days. - Cost: o R125 (standard Pty Ltd registration) o R475 (non-profit company) - Once approved, CIPC issues a Company Registration Certificate (CoR14.3). Step 4: Register for Tax with SARS Once the company is registered, it must be registered for tax with SARS. - Tax types to register for: o Income Tax (automatically issued by SARS) o Value Added Tax (VAT) (if revenue exceeds R1 million per year) o Pay-As-You-Earn (PAYE), UIF & SDL (for businesses with employees) o Corporate Tax (28% for businesses) o Tax Clearance Certificate (needed for tenders and contracts) - How to register: o Visit the SARS eFiling portal (www.sarsefiling.co.za) o Submit company documents and directors’ details. Step 5: Open a Business Bank Account Most banks in South Africa require the following to open a business account: - Company registration certificate (CoR14.3) - Proof of business address - Company tax registration number (from SARS) - ID documents of directors - Memorandum of Incorporation (MOI) Popular Banks for Business Accounts: - FNB - Standard Bank - Nedbank - Absa - Capitec Business Banking Step 6: Register for UIF & Compensation Fund (if hiring employees) If your business employs staff, you must register with the Department of Employment and Labour for: - Unemployment Insurance Fund (UIF) - Protects employees in case of job loss. - Compensation for Occupational Injuries and Diseases (COIDA) - Covers workplace injuries. How to register: - Visit the Labour Department or use uFiling for UIF registration. - Submit company details, employee contracts, and salary structures. Step 7: Comply with Industry-Specific Licenses Depending on your business sector, you may need special permits or licenses: - Food Business - Health and safety permit - Construction - NHBRC registration - Import/Export - Customs registration with SARS - Financial Services - FSCA licensing - Liquor Business - Liquor license from provincial liquor boards Step 8: Register with B-BBEE (Optional) - Broad-Based Black Economic Empowerment (B-BBEE) certification is required for government tenders or contracts. - Small businesses with a turnover of less than R10 million qualify for automatic Level 1 or Level 4 B-BBEE. - Apply via the DTIC or SANAS-accredited verification agencies. Step 9: Set Up Accounting and Compliance To remain compliant: - Submit annual returns to CIPC (to keep company active). - Pay corporate tax and submit financial statements to SARS. - Renew business licenses if applicable. It’s advisable to hire a business accountant or tax consultant to handle compliance. Summary Table of Steps and Costs Step Process Timeframe Cost (ZAR) 1. Choose Business Structure Decide on company type 1 day Free 2. Reserve a Company Name Register a name with CIPC 1-3 days R50 3. Register with CIPC Get a company registration certificate 1-7 days R125 4. Register with SARS Tax, VAT, PAYE, UIF 3-10 days Free 5. Open a Business Bank Account Choose a bank & submit documents 1-3 days Varies by bank 6. Register for UIF & COIDA Employee benefits registration 5-10 days Free 7. Industry Licenses Obtain permits if required Varies Varies 8. B-BBEE Certification Optional for government contracts 3-5 days Free (for small businesses) 9. Ongoing Compliance Annual tax & returns Ongoing Varies Conclusion Registering a business in South Africa is a structured process involving CIPC, SARS, banks, and regulatory bodies. Following the steps above ensures legal compliance and allows the business to operate smoothly . Would you like assistance with company registration, business plan drafting, or tax registration? How can we help you , please email us to info@samigration.com whatsapp message me on: +27 82 373 8415, where are you now? check our website : www.samigration.com Please rate us by clinking on this links : Sa Migration Visas https://g.page/SAMigration?gm |
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1. Purpose of the Business Visa The South African business visa is intended to attract foreign investment and stimulate economic growth by allowing foreign entrepreneurs to establish or invest in businesses that will benefit the country. The visa is granted based on the applicant's ability to contribute to the local economy, create jobs, and transfer skills. 2. Minimum Investment Amount As of the latest regulations, the minimum investment amount required for a South African business visa is ZAR 5 million (approximately USD 265,000, depending on the exchange rate). This amount must be invested in the business you intend to establish or purchase in South Africa. - Key Points: o The ZAR 5 million is the baseline requirement, but the actual amount may vary depending on the nature of the business and its economic impact. o If the business is in a priority sector (e.g., manufacturing, agro-processing, or renewable energy), the Department of Home Affairs may reduce the investment requirement to ZAR 2.5 million. 3. Proof of Investment Applicants must provide proof that the required investment amount is available and will be transferred to South Africa. This can be demonstrated through: - Bank statements or financial guarantees. - A business plan outlining the investment and its intended use. - Evidence of the transfer of funds into a South African business account once the visa is approved. 4. Additional Financial Requirements In addition to the investment amount, applicants must demonstrate that they have sufficient financial means to support themselves and their dependents while in South Africa. This includes: - Proof of additional funds for living expenses. - Evidence of financial stability to sustain the business during its initial stages. 5. Job Creation and Economic Contribution The South African government places a strong emphasis on job creation and economic contribution. Applicants must demonstrate that their business will: - Create employment opportunities for South African citizens or permanent residents. - Contribute to the local economy through skills transfer, innovation, or other measurable benefits. 6. Business Plan Requirement A comprehensive business plan is a critical component of the application. It must include: - Details of the business concept, market analysis, and financial projections. - A clear explanation of how the investment will be utilized. - Evidence of the business's viability and potential for success. 7. Application Process The application process for a South African business visa involves: 1. Submitting the required documents, including proof of investment, business plan, and financial statements. 2. Paying the applicable visa fees. 3. Undergoing a review by the Department of Home Affairs and, in some cases, the Department of Trade, Industry, and Competition (DTIC). 8. Exemptions and Special Cases In certain cases, the investment requirement may be waived or reduced: - If the business is deemed to be in the national interest or aligns with government priorities. - If the applicant is a highly skilled individual or entrepreneur with a proven track record of success. 9. Renewal and Compliance The business visa is typically issued for a period of up to 3 years and can be renewed. To maintain compliance, the visa holder must: - Ensure the business remains operational and meets the conditions outlined in the visa approval. - Provide regular updates on the business's financial performance and job creation. 10. Consultation with Professionals Given the complexity of the application process, it is highly recommended to consult with: - Immigration lawyers or consultants specializing in South African visas. - Business advisors to ensure the business plan meets the required standards. Summary The investment amount required for a South African business visa application is ZAR 5 million, with a potential reduction to ZAR 2.5 million for priority sectors. Applicants must provide proof of investment, a detailed business plan, and demonstrate the business's potential to create jobs and contribute to the economy. The process involves careful planning and compliance with South African immigration and business regulations. If you are considering applying for this visa, it is advisable to seek professional guidance to ensure a successful application. How can we help you , please email us to info@samigration.com whatsapp message me on: +27 82 373 8415, where are you now? check our website : www.samigration.com Please rate us by clinking on this links : Sa Migration Visas https://g.page/SAMigration?gm |
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Throughout the second half of 2024 Leon Schreiber was one of the most observed and often praised GNU ministers. An expert on public sector reform, Schreiber could be the antidote to the institutional entropy from which the Department of Home Affairs (DHA) has suffered for decades, or “dry rot” as a renowned organisational theorist called it. Schreiber has not been shy in adopting a proactive approach to the implementation of change within the department he heads. Nevertheless, the reality he will have to contend with internally in 2025 and beyond is that DHA remains systematically wanting of the necessary competency to perform its duties. Just administrative action and maladministration Since the South African Constitution came into effect, followed by the Promotion of Administrative Justice Act (PAJA), the world of public administrators and their administrative actions has been redefined and reshaped within constitutionally and legislatively prescribed boundaries. Yet, to date, public administrators within the DHA continue to make themselves guilty of maladministration. Too often DHA officers and adjudicators are either ill-informed or indifferent to the legislative and judicial rules that prescribe their administrative conduct and decision-making. Maladministration and misgovernment can also be attributed to, among other issues, a disregard for the administrative law principles of just administrative action. Lawfulness and procedural and substantive fairness are the three cardinal pillars that sustain just administrative action. Not only absence of bias is vital from a procedural fairness standpoint; but paramount to the principle of lawfulness is that “any public administrator must be properly qualified for a specific administrative function in order to make decisions”. Bias, mistrust and inadequate reasons Bias extends to the culture of mistrust which permeates the decision-making of the DHA on visa and permit applications, which places an imbalanced burden of proof on applicants. Applicants are lambasted with rejection notices generically stating their failure to submit “adequate proof”, or are rejected on the basis of the DHA’s inability to verify documents or relationships. Most rejection notices fail to include adequate reasons as prescribed in terms of sections 5(1) and 5(2) of PAJA, frequently leading to unnecessary litigation as - even when placed on demand notice for adequate reasons - the DHA fails to comply with its mandate within the prescriptions of just administrative action. Spousal relationships are deemed to be for the majority “purported” rather than real good faith relationships - even in the presence of long-standing marriages and children. Applications made by lawful married spouses for visas and permits are being rejected on the grounds that the “applicant failed to submit sufficient proof of financial responsibility and cohabitation” - notwithstanding the fact that the regulations only require such documentation in support of applications made on the basis of life partnerships, not to spouses who have entered into civil marriages. The murky verification process Financial and other documents included in applications frequently fail to satisfy the DHA’s adjudicators, to such an extent that there appears to be a parallel murky verification process which has no basis in law or statute. The DHA’s own inability to process applications within a reasonable time, as also prescribed by PAJA, seems to have derailed and hijacked the adjudication process through a self-assumed and self-empowered verification process that is cryptic and prima facie unlawful. Lawyers have successfully challenged in court the lawfulness of the DHA’s verification process and of the recurring absence of adequate reasons. Furthermore, and as repeatedly placed on record with the DHA, due to global banking secrecy laws, attempts by the DHA and the Department of International Relations and Cooperation to verify banking account information directly with financial institutions overseas is unlikely to succeed. The so-called consent forms sent to applicants for these purposes by the DHA have very little value outside South Africa - particularly when these contradict local and international legislation overseas. Institutional incompetence In a compelling 2022 judgment the Western Cape High Court endeavoured to obtain clarifications from the DHA and the state attorneys on what exactly the verification process entailed, what its purpose was and on the grounds of which regulations it was conducted, only to conclude that “it was apparent to the court that there appeared to be some uncertainty and confusion as to exactly what such process would entail” and that “these assertions by the respondents clearly indicate the failure to properly understand and appreciate the confines of the statute and Regulations which they themselves are bound by”. This ruling led to a substitution order on the grounds that the court found there to be on part of the DHA “delay, bias and [institutional] incompetence”. Yet, review after review, court order after court order, the DHA persists with the same unlawful patterns, reminding one of the malaise to which Einstein referred as insanity - “doing the same thing over and over again and expecting different results”. At the end of 2024, in the DHA’s bid to clear the backlog, an extraordinary volume of rejection notices flooded the system, reflecting a concerning pattern of inadequate, ill-informed and erroneous decisions while the verification process continued unaffected. These decisions fall wide of the mark of the test of the ratione personae or competency imposed on the public administrators responsible for those decisions which, failing the test of PAJA, are unlawful. Empowering provisions Naturally, the volume of applications caught in the backlog would mean that there would be a corresponding rise in rejected applications - but a point of concern remains the poor quality of the decision-making involved. Moreover, as I had sadly anticipated, as VFS Global quickly reached its capacity limit and to accommodate the submission of appeals, in an unprecedented move, a directive signed by Director-General Livhuwani Makhode on 27 November 2024 was circulated, extending the legislatively prescribed deadline (of “10 working days from the date of receipt of the outcome”) to submit appeals until the end of March 2025. It is worth mentioning that this directive was initially leaked and circulated as Immigration Directive 12 of 2024, signed on 20 November 2024. In its original format, Directive 12 stated that the bottleneck was due to the backlog-addressing project: “As a result of the high number of visa and permit outcomes produced as part of the visa and permit backlog project, the appointment system at VFS Global for submission of appeals applications has been constrained”. Within a week, the DHA made a gaslit U-turn by silently replacing the directive and scapegoating VFS’s systems as responsible for this move, stating: “The Department has noted that the booking system, at VFS Global, has been experiencing problems… due to unavailability of dates.” More importantly, outside of a proclaimed state of disaster, we are, again, left questioning on the basis of what empowering provision any such directive can be effective in law. Abuse of power In our view, the risks of continuing to run an incompetent department and of outsourcing solutions outweigh by far the benefit of reporting the clearance of the backlog. As Professor W Erasmus once wrote: “The state administration has power, and concurrent with the possession of power, is the possibility to abuse this power… the violation of rights, through the abuse of power by the state administration is an actual reality.” |
