On May 1 2011 the Companies Act, 2008 replaced the Companies
Act, 1973. The new Act has changed the way companies are
governed and incorporated in South Africa.
The new Act requires that an external company register with
the Companies and Intellectual Property Commission (CIPC)
within 20 business days after it first begins to conduct
business or conduct non-profit activities in South Africa.
A foreign company will be seen to be conducting business or
non-profit activities if, among other things, it is a party to
one or more employment contracts within the Republic, or it has
conducted activities over a period of six months in the
Republic that would lead a person to reasonably conclude that
the company is engaging in business or non-profit activities
within the Republic.
This type of company allows a foreign entity, with the
exception of banking and insurance companies, to establish a
place of business...