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Free State Business 2021

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The 2021 edition of Free State Business is the 11th issue of this successful publication that, since its launch, has established itself as the premier business and investment guide for the Free State. The Free State has varied investment and business opportunities and the Free State Development Corporation describes some of these in detail in these pages. Drilling for natural gas is a new phenomenon which may spark activity in other sectors and this journal notes significant new investments and projects in the chemicals and mining sectors. The official launch of the Maluti-A-Phofung Special Economic Zone (MAP SEZ) was a significant event for the economy of South Africa’s most centrally located province. Located on the strategically significant N3 highway that links the economic heartland of South Africa to the coast, the MAP SEZ has the potential to attract new investors and spark a revival in the manufacturing sector. In addition, overviews on each of the key economic sectors provide up-to-date information on trends in the mining and tourism sectors, for example. Regular information about the size and nature of each sector is also included.

SPECIAL FEATURE

SPECIAL FEATURE Establishing a business in South Africa South Africa has eased the barriers to doing business for locals as well as international companies and individuals. new legislation, no new Close Corporations can be created but CCs can convert to companies. Registration of company The company must be registered with the Companies and Intellectual Properties Commission, (CPIC) in Pretoria within 21 days of the company being started. There are a range of administrative procedures that need to be fulfilled. Bank account A business bank account must be opened in the company’s name with a bank in South Africa. South Africa has a sophisticated legal, regulatory and banking system. Setting up a business in South Africa is a relatively straightforward process with assistance being offered by organisations such as the Department of Trade, Industry and Competition and provincial investment agencies like the Free State Development Corporation (FDC). South African law regulates the establishment and conduct of businesses throughout the country. Tax, investment incentives, regulations governing imports, exports and visas are uniform throughout the country. The particular environment varies from province to province with regard to the availability of human and natural resources, the infrastructure and support services, business opportunities and the quality of life. In this respect, the FDC can offer specific advice about the business environment in the province. Business is regulated by the Companies Act and the Close Corporation Act, which cover accounting and reporting requirements. Under Registration with the receiver of revenue • As a Provisional Taxpayer • As a VAT vendor • For Pay As You Earn (PAYE) income tax payable on money earned by employees • For Standard Income Tax on Employees Registration with the Department of Labour Businesses employing staff will have to contact the Department of Labour regarding mandatory contributions to the Unemployment Insurance Fund (UIF). Register with Compensation Commissioner for Compensation Fund: Files with the Compensation Fund (in the Department of Labour) for accident insurance (Workmen’s Compensation). Registration with the local authority Relevant only to businesses dealing in fresh foodstuffs or health matters. Other procedures • Checking exchange control procedures (note that non-residents are generally not subject to exchange controls except for certain categories of investment). FREE STATE BUSINESS 2021 26

is renting out 18 850 sqm standalone factory including Furniture FDC Machinery, Equipment, and Furniture for Business Manufacturing SPECIAL FEATURE • Obtaining approval for building plans • Applying for industry and export incentives • Applying for import permits and verifying import duties payable • Registering as an exporter if relevant and applying for an export permit. Business entities There are a variety of forms which businesses can take, including private and public companies, personal liability companies, non-profit companies, state-owned companies and even branches of foreign companies (or external companies). Branches of foreign companies fall under Section 23 of the Companies Act of 2008 and are required to register as “external companies” with the CIPC. An external company is not required to appoint a local board of directors but must appoint a person resident in South Africa who is authorised to accept services of process and any notices served on the company. It must also appoint a registered local auditor and establish a registered office in South Africa. Patents, trademarks and copyrights Trademarks (including service marks) are valid for an initial period of 10 years and are renewable indefinitely for further 10-year periods. Patents are granted for 20 years, normally without an option to renew. The holder of a patent or trademark must pay an annual fee in order to preserve its validity. Patents and trademarks may be licensed but where this involves the payment of royalties to non-resident licensors, prior approval of the licensing agreement must be obtained from the dtic. South Africa is a signatory to the Berne Copyright Convention. Permits for foreign nationals Work permits In considering whether or not to grant a work permit, the Department of Home Affairs will first evaluate the validity of the offer of employment by conducting a number of checks to confirm the following: • Has the Department of Labour been contacted? • Has the position been widely advertised? • Is the prospective employer able to prove that he or she has tried to find a suitably qualified local employee prior to hiring a foreigner? • Is the prospective employee appropriately qualified and do they have the relevant I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H FDC is renting out 18 850 sqm standalone factory including Furniture O P E R T Y T O R E N T I N H A R R I S M I T H Manufacturing Machinery, Equipment, and Furniture for Business R P L A I R T S U D N I Operation.. experience? The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on Operation.. arterial routes and Quick access onto N3 Freeway. main Business permits Foreign nationals who wish to establish their own business or a partnership in South Africa must, apart from having sufficient funds to support themselves and their family, be able to invest at least R2.5-million in the business. FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION The INCIDENTS funds TO THE FRAUD HOTLINE must 0800 212 154 originate overseas, be transferable to South Africa and belong to the applicant (ie emanate from the applicant’s own CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 bank account). The business must also create jobs for South African citizens. After six months to a year, proof will have to be submitted that the business is employing South African citizens or permanent residents, excluding family members of the employer. Applications for work permits for selfemployment can only be lodged at the South African Consulate or Embassy in the applicant’s country of origin. The processing fee is US6. The applicant would also have to lodge a repatriation guarantee with the consulate/embassy equivalent to the price of a one-way flight from South Africa back to his or her country of origin. This guarantee is refundable once the applicant has either left South Africa permanently or obtained permanent residence. Any application for an extension of a business permit may be lodged locally. The processing fee per passport holder is R425. Some countries also need to pay R108 per return visa. A list of countries to which this applies is available from the Department of Home Affairs. The FDC assists investors in applying for the relevant work permits to conduct their business. This factory offers the following: 2277 in Harrismith and close proximity to all amenities, on Site at Situated is factory The Sprinkler System. and Quick access onto N3 Freeway. main arterial routes Doors Roller 4 factory offers the following: Security Guard House This System. Well fenced and secured Sprinkler Ample parking Doors Roller 4 3 phase power with 100 amps House Guard Security 8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with Well secured and fenced shower Ample parking phase power with 100 amps Occupation available immediately. Please contact Mr Tefo Matla for more 3 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with information or to view: 8 shower 051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za Tel: Occupation available immediately. Please contact Mr Tefo Matla for more information or to view: Tel: 051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND What can the FDC do for you? The FDC will help new businesses by assisting in project appraisal and packaging, putting investors in touch with relevant agencies and government departments, alerting investors to investment incentives and setting up joint ventures where required. ■ 27 FREE STATE BUSINESS 2021

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