< Index For This Issue>< Submit An Article >< Contact The Editor >

Why would anyone want to open a business in a country where people get killed for less than $5? There are many good reasons. South Africa may be the country with the highest crime and AIDS rate in the world, but it offers several incentives that cannot be overlooked.  Apart from the economic benefits, it is a vibrant, sunny and beautiful country with friendly people, cultural diversity and tolerance, a rich wildlife, and endless opportunities. Incentives for new business and investment - The South African government aims for a 6% annual economic growth and has implemented several incentive measures to curb the high unemployment rate. The main goals of the incentives are to promote export, spatial improvement, industrial growth, enterprise development, and decrease unemployment. The incentives are geared toward foreigners who want to invest or open a business in South Africa. Certain zones have been identified as prime priority, and Johannesburg as part of the Gauteng province, is one of them.  The Department of Trade and Industry (DTI), and the Industrial Development Corporation (IDC), oversee the incentives schemes in the form of non-tax grants. The incentive grants are limited to three years for any project. Ventures from the following segments qualify: manufacturing; agriculture; aquamarine; biotechnology; tourism; IT; communications; agro-processing; cultural enhancement; business development; motor industry; textiles; engineering, and science development. The allowances can be grouped under the following categories: Broad-spectrum incentives The general assistance takes the form of electricity allowances for larger companies, assistance programs for industrial originality and joint ventures, expertise support programs with concessions for instruction of new employees, as well as the skill and workforce program to encourage the transferring of knowledge. This applies to businesses that endeavor to expand their operations. Compensation is limited to half the cost for training the new workforce. Economic incentives The IDC offers below average interest rates on business loans for sizeable endeavors based on the feasibility of the projects. They also provide incentives for small enterprises through awards and compensation in the third year of operation. The allowances are based on the ratio of worker salaries to development expenditures. Foreign venture incentives DTI provide allowances to foreign companies to a maximum of $150 000 for each project where capital goods, equipment, and machinery are brought into the country for the purpose of establishing a business in South Africa. This decreases the initial setup or relocation costs of businesses by covering a portion of the shipment expenses of the equipment. Industrial zones A number of industrial development areas have been identified for capital investment and government assistance. The aim is to provide facilities for export related industries. Under the scheme, businesses that fall in one of the zones can apply for tax-free imports of capital products. Assistance for small and medium enterprises The small and medium business assistance program is aimed at employment creation, investment promotion for tourism, manufacturing, IT, agricultural developments, and sustainable business projects. Compensation for a maximum of 10% of the original investment cost is provided to these businesses. Manufacturing incentives Companies with manufacturing as their exclusive operation can apply at the Regional Development Offices for a tax break for up to six years. They must apply for project approval before they start with the venture. Urban development areas Several urban zones have been identified for renewal and development. The aim is to promote inner city regeneration across South Africa over the next 10 years. Johannesburg and Cape Town are two of the sixteen cities. The incentives are in the form of accelerated reduction grants. A tax deduction of 20% is provided in the first year of renovation or development. Companies that own commercial or industrial property in the city zones can apply at the city councils for compensation when they refurbish property in the areas. The program also includes residential property and the construction of new buildings.  The following must be included in the application: descriptions of the structure; renovation plans; cost projections, and construction plans. Occupancy and location certificates must be obtained and a tax return completed with the South African Revenue Service (SARS), together with the financial statements for the upgrading or new development. Tactical investment assistance A division of the DTI, called the Enterprise Organization provides and investment incentive scheme for industrial endeavors that exceed R50 million ($8 million) in eligible industrial resources. The purpose of the program is to draw foreign private entity investment. Businesses involved in manufacturing, IT, and research qualify. The manufacturing of tobacco related products are excluded. Companies must proof that they create job opportunities and they must increase the annual production of goods. Apart from this, they must not have a negative impact on local products and jobs. Guide to opening a business in South Africa’s golden city: Johannesburg Opportunities in South Africa - The agro-processing, motor industry, banking chemicals, food and beverages, information services, computer technology, tourism, telecommunications, property and mining are all segments that show positive growth. The industry includes preparation processes with regard to maize, sugar, fruit, malt, and meat. South Africa is an international player with regard to food and beverage processing and self sufficient in food production. It is one of the main exporters of food and agricultural related products to countries in Africa. There are numerous multinational corporations in the country including Nestlé and Coca Cola. - Article Continued Below -

Parisians do it and you can do it, too -- have a great three course meal with wine and coffee in Paris for between $10 and $35 including tax and tip! Adrian Leeds has been scouting good-value restaurants in Paris for more than nine years. The Leeds Good Value Guide to Paris Restaurants is her on-going effort to bring you secrets to great dining in all the districts of Paris. There are more than 200 good-value restaurants in the guide -- and she samples each and every one and only recommends the best.  Get Adrian Leeds World Famous Paris Restaurant Guide Paris Restaurant Guide - Click Here .. Real Estate In Africa & The Indian Ocean See Current Real Estate Listings in Africa & The Indian Ocean -  Now In Our Real Estate Marketplace -  We have numerous real estate listings in Africa & The Indian Ocean  with color photos - Beachfront bargains, Vineyards, Farms, Islands, Enclaves, Coast Property, Sale by Owner, Including Seychelles, Cape Verde, Egypt, Morocco, South Africa and Mauritius.  See updated Listings 24 hours a day, seven days a week.  Sell Your Property In Africa ... . Unique Vacation Options Including Vacation Options In Europe .

The Portable Professional - Earn A Living Worldwide - It is now possible to make a living from anywhere you can log on.  The technology is there and the opportunities are there.  Mark McMahon has written an eye-opening report on how to make a living worldwide.  Earn US Dollars and/or EUROS from wherever you are on the planet.  The options are limitless and the time is now.  Learn more about how to break free - learn how you can live your life like it belongs to you - Live Where You Want To Live! ~ Live How You Want To Live! ~ And Make Money Doing It! - . The  Expat’s Guide to Living in Spain - A report on moving to Spain. The nation that produced the twentieth centuries best artists; including Picasso and Miro.  The backdrop for the novel The Sun Also Rises by Ernest Hemingway, the novel about expats that changed our perspective of the world. Spain is among the quintessential expat destinations. With fine real estate, excellent food, profound culture, and some of Europe's best islands and beaches, Spain is an extremely worthy consideration as an expat destination. This report by Arin Vahanian, eighty pages in length, provides the details that we need when considering Spain as a destination.  Real Estate, Contacts, Employment, Legal Considerations, Citizenship, all laid out in a comprehensive easy to read format.  An Expat’s Guide to Living in Spain will save you money, answer your questions, and prepare you to live in Spain.  Available online in eBook form:  An Expat’s Guide to Living in Spain - Click Here to learn more -  .. The Andorra Report - An Expat’s Guide to Living in Andorra - Try to Imagine this: a lush green valley... hidden from the rest of the world... yet only a short drive from some of Europe's hottest cities. It's a secret valley that has been overlooked for centuries. It is picturesque. unregulated, and best of all there are no taxes. The Andorra Report will teach you the secrets of Andorra, how you can live there tax-free for only a fraction of what it's costing you to live in your own home. .

The motor industry welcomes foreign investment and already includes large international corporations such as Ford and Toyota. The factories are located in the Eastern Cape and Gauteng. There are still hundreds of opportunities in the manufacturing of motor steel components. 

Chemical related industries form the largest part of the manufacturing industry and contribute 5% to the GDP. The government runs several intervention assistance schemes for petroleum related ventures.

South Africa has the fifth fastest growing information technology and communications industry in the world. More than 60% of the population has mobile phones. The three main players in the mobile phone services are Cell-C, MTN, and Vodacom. The local outcry over high mobile phone rates have led to more negotiations to open the industry to other players in order to gain more competitive rates. Large international mobile phone companies have already invested in South Africa including Siemens and Alcatel. Telkom controls the landlines with an estimated figure of 7 million users in 2003. The continued stealing of telecommunication cables and subsequent service interruptions has pushed many users to rather make use of mobile phone and Internet connection services. 

The high crime rate led to a large security industry. The residential estates and office parks all have access control, alarms and Internet connections. This has opened up possibilities in the manufacturing of security control systems, communication products and integrated circuits.

Commercial property growth surpassed that of residential growth in 2005. The property prices in South Africa are still low in comparison with the United Kingdom and even though fear of a property growth bubble has led to a slower growth, the property market continues to show tremendous growth. Development land is in high demand in Gauteng and Western Cape. The building and construction industry will continue to benefit from the positive property investment trend. 

South Africa is an economic leader in the mining of gold, platinum, diamonds and chrome. There are numerous opportunities for the processing of iron, carbon, and stainless steel. 

The tourism industry topped $10 billion in 2003. Eco-tourism is seen as a viable alternative to normal farming practices and provides thousands of jobs to poor communities situated next to game reserves. The Dinokeng project provides foreigners the opportunity to open tourist related businesses in set areas and benefit from government grants when they protect the environment, cultural heritage, and provide substantial job opportunities to the previously disadvantaged communities in the area.

Procedures for opening a business in Johannesburg

Legal status of businesses
The Companies Act regulates all South African companies. There are a few choices of legal entities. The Companies and Intellectual Property Office (CIPRO) administers registration of new businesses.

Companies 
The first step is to reserve a name at CIPRO. A memorandum of the company and consent of its auditors must accompany the application for registration. The process takes 4 to 6 weeks and costs around R3300 excluding VAT. If a foreign company wants to register in South Africa, it must register as an external business with a certified copy of its articles and memorandum or equivalent thereof. A South African diplomatic entity must authenticate it. Foreign business branches are subject to the same laws and regulations as local businesses. The cost is around R2500 excluding VAT. 

Private companies may not have more than 50 shareholders while public companies must have at least 2 directors and at least 7 shareholders. It is not a prerequisite to be resident in South Africa. There isn’t a minimum of equity capital required. Any subsidiary of a foreign business is regarded as a South African company but the legal accountability of the parent company is limited to the capital that is invested.

Close corporations
These business entities must have founding statements. Registration is also done through CIPRO and takes around 4 to 6 weeks to complete. Close corporations may have 1 to 10 members. Most foreign businesses rather register as private companies because of certain limitations on close corporations.

Sole proprieties and partnerships
It’s not necessary to register a sole propriety or partnership but you will need to obtain a bank account in order to reserve a name. Sole proprieties are also subject to the same tax regulations, VAT and levies as other legal entities. 
.

Driving the Pan-American Highway to Mexico and Central America - Driving the Pan-American Highway to Mexico and Central America  - The Only Guide Book on the Subject - Exclusive - This Updated Version - 2004 - of Driving the Pan-American Highway that is available on this website is an EscapeArtist.com exclusive available only here and only in eBook - The updated eBook version of this guide is the must have guide for anyone who is thinking of driving through Mexico to Central America."

Businesses that operate or derive their income from within the borders of South Africa are subject to certain levies and taxes. The South African Revenue Services (SARS) manages the tax system. Any business profits derived from business activities in South Africa are taxable. Businesses can select their own financial year-ends. All enterprises must complete annual tax return forms. Provisional tax estimates are conducted and payable twice a year. Branches and agencies of foreign companies are taxed at a rate of 35%. Trusts are taxed 42%. Businesses must pay the following taxes and levies:

Income tax
The country has progressive taxation on all personal income arising from within South Africa. Tax on non-South African inhabitants is determined by the location from where the income is derived. 

Value Added Tax (VAT)
A business with a turnover of more than R300 000 a year must register for VAT. Any division of a foreign owned business entity must register for VAT payable at 14%.  VAT is an indirect form of taxation payable on goods and services delivered. Enterprises have a VAT cycle of two months.

Levy on regional services
The levy varies according to the region within South Africa and ranges from 0.14 to 0.35% excluding VAT. The business income and salaries determine the levy. The levy will be scraped in June 2006.

Stamp duties
The transfer of shares entails 0.25% stamp duty. Bond and rental agreements also have a stamp duty payable.

Transfer duties
There are transfer duties payable on land and buildings of 10% in terms of corporations. The businesses are exempt of the duties when VAT is charged.

Unemployment insurance
Businesses must contribute to the Unemployment Insurance Fund (UIF), which is a fund setup for workers who lose their jobs. Employers make a payment 2% of their monthly-allocated salaries up to a certain established total. You can contact the Labor Department in Johannesburg to make sure that your business comply with all the requirements at +27 11 497 300 or +27 11 444 7631.

Workmen’s compensation
Employers must register their employees for workmen’s compensation and must contribute to the fund. The fund provides compensation for injuries while at work.

Levy for the development of skills
Enterprises must pay a levy of 0.5 to 1% on the total amount of its salaries when the payroll is more than R500 000 a month. The levy is used to fund the education and skills development of workers in South Africa. - Continues on the Next Page -.
...