Open for business

Author: | Published: 11 Jul 2011

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...